The Consumer Price Index (CPI) for January came out significantly higher than the estimates, sending crypto prices tumbling. Bitcoin's price dipped to $94,200 before rebounding to $95,500. However, in the wake of major economic data releases, the initial market reaction is often the most accurate reflection of sentiment, while the subsequent reversal typically serves to shake out late long and short positions before resuming the dominant trend. Considering the hot CPI print, BTC could retest the $91.2k support. However, savvy investors claim to be buying the dip, with Bitcoin, Ethereum, BNB and low-cap meme coins in high demand. What Does The Hot CPI Print Mean for The Crypto Bull Market? Crypto prices have been reacting to concerns regarding high inflation for some time now. The Bitcoin price fell from $102k last week to $95k on Tuesday, primarily owing to the stick inflation, strong US Dollar and high treasury yields. Yet, January’s CPI exceeded market expectations, with headline inflation rising 3% YoY versus the 2.9% estimate. Core CPI, excluding food and energy, climbed 3.3% YoY, outpacing the projected 3.1% increase. 🚨 Just In: January US CPI annual inflation rises 3.0%, above expectations for 2.9%.Core CPI inflation increased 3.3% Y/Y, higher than forecasts for a gain of 3.1%. pic.twitter.com/xREyjJpCry — Jesse Cohen (@JesseCohenInv) February 12, 2025 Crucially, headline inflation is moving in the wrong direction, rising for four consecutive months instead of trending toward the Fed’s 2% target. As a result, interest rate traders have pushed back expectations for a Fed rate cut, now anticipating no adjustments until December. The US Dollar Index (DXY) is firmly back above the 108 mark following the hot CPI, while the long-term treasury yields continue to surge, both scenarios spelling short-term doom for the crypto market. Why Experts Are Still Bullish On Crypto? Despite the hot CPI print, smart money investors believe the crypto bull market isn’t over. For instance, Chartered Financial Analyst Julian Bittel expects the global liquidity will continue to surge, despite a pause in rate cuts and a delay in the quantitative easing from the Fed. Unsurprisingly, key indicators, including the Bitcoin GMI cycle top finder, continue to reveal that the cycle top is still far away. Furthermore, legendary trader Bluntz and many others believe the US Dollar is near its local top and will continue to weaken for the next 1-2 years, which would pave the way for a parabolic rally in risk assets. very nice rejection from $dxy so far, this has defo topped for the next 1-2 yrs imo. https://t.co/bcdTXPxFRG pic.twitter.com/JtHOBxwEXn — Bluntz (@Bluntz_Capital) February 5, 2025 In such a scenario, any dip in crypto prices will likely provide an excellent opportunity for sidelined investors to buy the dip. Best Cryptos To Buy On The Dip Don’t be fooled by Bitcoin’s recovery to $95,500 following the hot CPI data. The initial reaction always reflects the correct market sentiment and BTC could dip to the $91.2k support level. Nevertheless, this is just another opportunity for sidelined investors to position themselves for the bull market in the coming months. For instance, while the Ethereum price was declining last week due to concerns regarding high inflation, whales have purchased more than 600,000 ETH coins. Whales have bought over 600,000 #Ethereum $ETH in the past week! pic.twitter.com/y736DxlGSP — Ali (@ali_charts) February 12, 2025 If these smart money investors are to be believed, it could be finally time to go all in on ETH and Ethereum meme coins. Meanwhile, the BNB ecosystem is also showing significant bullish strength. The BNB price is up by 15% over the past week while Pancake Swap has rallied by more than 70% in the same period. Clearly, whales are buying the dip. Low-cap meme coins are also in high demand. For instance, Solaxy (SOLX) has raised nearly $20 million in its ICO, with many eyeing it as the next 10x crypto. Solaxy is the first prominent Solana Layer-2 token, aiming to offer exponential scalability and zero downtime to the Solana blockchain. Considering its ambitious goals, it is no surprise experts believe it is undervalued in its presale. Similarly, a new meme coin, BTC Bull (BTCBULL) , has raised nearly $1 million in just over a day. The project offers its token holders free Bitcoin as airdrops when the BTC price hits certain milestones. This is besides the BTCBULL burn events and staking rewards. Many are already calling BTC Bull the next 100x meme coin. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
