Bitcoin (BTC) continued its sluggish performance, dropping nearly 2% on Tuesday as a key support level fell away, allowing sellers to drag the price to an intraday low of $94,903. BTC has since recovered and is trading around $96,200. Price action remains muted due to concerns about Trump’s trade tariffs. Markets are also waiting for upcoming US CPI Data. Drop In Inflation Could Trigger Bitcoin (BTC) Rally The crypto markets don't expect changes in the upcoming US Consumer Price Index (CPI). However, a lower print is possible and could trigger a rally, according to Markus Thielen, Head of Research at 10x Research. “There is a real possibility of a lower print, which could ignite another rally attempt.” According to Thielen, most market participants expect a 2.9% year-on-year (YoY) inflation rate in the US Bureau of Statistics report, which is due to be released on February 12. However, Thielen pointed out that the US Truflation Inflation Index, a real-time inflation tracker, had declined to 2.1%, indicating that inflationary pressures could be easing faster than expected. “If CPI surprises to the downside at 2.7% or 2.8%, Bitcoin could see a relief rally.” Thielen explained this was the reason why BTC surged in January. Market participants were expecting a third consecutive month of rising CPI, but the 2.9% inflation print remained unchanged from December, catching them off guard. A similar rally could send BTC to $105,000, just shy of its all-time high. Yet Another Satoshi Nakamoto Documentary There is yet another documentary attempting to figure out the identity of the pseudo-anonymous creator of Bitcoin, Satoshi Nakamoto. The new documentary comes shortly after an HBO program that claimed to unveil Nakamoto’s identity. However, the documentary was panned by the Bitcoin community. The new documentary will launch on YouTube on February 17 and will be hosted by the reporter Gabriel Gatehouse. Gatehouse hosts a BBC podcast called “The Coming Storm” that delves into conspiracy theories tearing America apart. According to reports, the new series uncovers a conspiracy to end democracy and transform the world as we know it. Besides shedding light on Nakamoto’s identity, the documentary also highlights how individuals and ideas at the heart of Bitcoin’s creation have traveled to the center of politics. According to the executive producer of the series, the investigation “morphed from a manhunt to a surreal quest to uncover a potential plot by a group of Silicon Valley power brokers to undermine democracy.” Bitcoin (BTC) Price Analysis Bitcoin (BTC) fell nearly 3% after Federal Reserve Chair Jerome Powell cautioned against rate cuts, citing elevated inflation figures and a tight labor market as reasons for the Fed’s hawkish stance. With the Fed adopting a hawkish stance, BTC’s price action remained muted, with traders waiting for the CPI numbers. BTC has been trading within a narrow range since last week, with concerns about an escalating global trade war impacting market sentiment and risk appetite. President Donald Trump has also announced tariffs on aluminum and steel, further impacting market sentiment. The Federal Reserve is expected to keep interest rates unchanged, with Powell indicating no immediate urgency to reduce short-term interest rates, suggesting a cautious monetary policy. Higher interest rates can adversely impact cryptocurrencies by lowering risk appetite, making assets like BTC unattractive to investors, and strengthening the dollar. The combination of the anticipated inflation data and Powell’s remarks have made investors risk-averse. The risk aversion can be seen in BTC’s price chart, which shows muted price action over the past few sessions. BTC made a strong recovery from last Monday’s low when it dropped to $91,274. The price ultimately recovered to reclaim $100,000 and settle at $101,579, an increase of nearly 4%. However, it was back in the red on Tuesday, dropping 3.54% to slip below $100,000 and the 50-day SMA to $97,983. Sellers retained control on Wednesday as BTC dropped 1.34% to $96,668. BTC attempted to reclaim $100,000 on Thursday, reaching an intraday high of $99,237. However, it could not stay at this level and fell to $96,641, ultimately registering a marginal decline. Source: TradingView BTC briefly crossed $100,000 on Friday, reaching an intraday high of $100,222. Once again, selling pressure forced buyers into a retreat, and the price ultimately settled at $96,634. Price action was muted over the weekend as BTC registered a marginal increase on Saturday and a marginal decline on Sunday to end the weekend at $96,526. BTC encountered volatility on Monday as buyers and sellers struggled to take control. Buyers ultimately gained the upper hand, and BTC rose nearly 1% and settled at $97,468. BTC dropped to an intraday low of $94,903 on Tuesday as bearish sentiment returned. However, BTC recouped some losses and settled at $95,801, down nearly 2%. The current session sees BTC marginally up and trading at $96,275 as buyers look to push the price higher. Buyers must keep BTC above $96,000 to prevent a further decline. If this level is breached, BTC could drop to $90,000. The RSI and MACD indicate that sellers have the advantage. 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.
