- Bitcoin recovered to $ 83,000 after falling under $ 80,000 in the early week. Another increase over $ 84,000 could pave the way for the upward trend.
- Despite the recent volatility, old coins show an upward trend. Analysts assume that the upward market structure offers buying opportunities for DIP purchases.
All eyes are currently focused on the publication of the US consumer price index (CPI), which will later be published on Wednesday and will state the sound for the next monetary policy decisions of the Federal Reserve. Bitcoin and the broader cryptom market currently seem to consolidate something and wait for clear signals.
Inflation expectations for 2025
Leading market analysts predict a significant decline in both the overall and core inflation figures for the last month of February 2025. This would be the first decline in the two indicators in eight months, i.e. since July 2024. In January 2025, core inflation slightly rose from 3.2 % to 3.3 %. For February, the consensus estimates indicate a reversal, whereby the rate is expected to fall back to 3.2 %. Teforecast assumes a clearer decline and predicts a decline from 3.3 % to 3.1 %.
The wider market consensus assumes that the US inflation numbers will decrease significantly, with a decrease in the consumer price index to 2.9 %. It is remarkable that the Kalshi dealer 6 of the last 8 VPI numbers have correctly predicted what strengthens trust in their forecasts.
In addition, the analysts from QCP Capital found that market volatility has risen significantly, the volatility index (VIX) increase to 28 before weakening to 26.6. The shift of the appointment structure of the CBOE VIX in the direction of backwardation indicates a potential market floor. All eyes are now focusing on the CPI report that appears tonight, which could influence the interest expectations. The markets passed from an interest rate reduction in the Fed in January to four interest rate cuts this year.
Bitcoin and cryptomarkt campaign in advance
After the Bitcoin course had fallen under $ 80,000 at the beginning of the week, it recovered and recaptured the $ 83,000 mark. If the US inflation figures for the markets are favorable, BTC could quickly resume upward trend and achieve further price gains from here-CNF reported.
The prominent cryptoanalyst Michael van de Poppe has optimistically commented on Bitcoin’s current price development. He said that the BTC chart shows optimism despite the current volatility. Van de Poppe suggested that a re-exceeding of the $ 84,000 mark could pave the way for a new one, which would possibly signal a trend reversal in general:
“To be honest, Bitcoin’s chart is not bad. If we test the $ 84,000 mark again and reach a new one, we could reverse the trend. ”
On the other hand, there are also signs of a trend reversal after a brutal crash in the old coins, as CNF reported. Michael van de Poppe has highlighted a positive outlook for old coins and pointed out that the market structure continues to tend to the top despite the latest price fluctuations. Van de Poppe noticed in a recently submitted explanation:
“The structure is still directed upwards, which means that we are in the DIP purchase area for the old coins.”
