Bitcoin Price Reaction: Can it Break $95K After CPI Report?

Bitcoin Price Reaction- Will It Hit $100K?

Bitcoin Price Reaction– The latest U.S. Consumer Price Index (CPI) report has brought a surprising twist, as inflation cooled faster than expected. Core CPI came in at 3.1%, slightly lower than the anticipated 3.2%, while headline inflation also saw a minor decline. This shift has led to rising expectations of rate cuts.

Following the CPI report, expectations for interest rate cuts surged significantly. The likelihood of a rate cut in May now stands at 31.4%, more than tripling from last month’s prediction. Furthermore, forecasts for three rate cuts by the end of the year have spiked to 32.5%, and the probability of four cuts has jumped from 1% to 21%, signaling a dramatic shift in market sentiment.

Bitcoin’s Reaction to the News

Commenting on the situation, Matt Mena, Crypto Research Strategist at 21Shares, highlighted that the cooling inflation and potential rate cuts could trigger a liquidity surge that might boost both equities and crypto. “Bitcoin has rebounded, retesting $85K,” Mena noted, suggesting that rate cuts this year could fuel significant market movements.

However, despite the positive news, Bitcoin’s price has struggled to maintain momentum. It recently slipped from over $84,000 to around $83,000 due to concerns about Trump’s trade policies and broader macroeconomic uncertainty. As of now, Bitcoin is trading at $83,030.57, showing a modest 0.57% gain in the last 24 hours.

Potential for Bitcoin’s Breakout

Mena further speculated that with inflation cooling and fears of a recession not worsening, Bitcoin could be on the brink of a breakout. “Bitcoin could push past the stubborn sub-$90K range and test the $95K resistance before targeting the $100K mark,” he said, hinting at a potential move into six-digit territory.

Despite the market’s optimism, Federal Reserve officials, including Chairman Jerome Powell, have cautioned against rushing into rate cuts. This cautious stance has sparked concern among analysts who fear that delaying cuts might trigger a bear market. Investor Anthony Pompliano even speculated that President Trump might be deliberately pressuring the markets to push the Fed into action.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.