Bitcoin Price Analysis: What to Expect From BTC After US CPI Release and Fed’s Decision

• Market sentiment remains bullish, with a majority of investors predicting Bitcoin price to rise after the US CPI release.
• Analysts, including Michaël van de Poppe, foresee the possibility of Bitcoin reaching new all-time highs in the coming weeks.

Bitcoin price continues to face selling pressure with another 2% drop and slipping all the way to $96,200 levels today. However, with market expectations of a low US CPI and reducing inflationary pressure, there’s a high chance of BTC reversing its trajectory and moving back past $100K levels.

Fed Chair Commentary on US CPI and Easing Inflation

Jerome Powell, the chairman of the US Federal Reserve, will be speaking at Congress today, February 12, and will testify before the House of Financial Services Committee. Powell remains committed to holding interest rates where they are and doesn’t see any need for change in the policy stance.

With our policy stance now significantly less restrictive than it had been and the economy remaining strong, we do not need to be in a hurry to adjust our policy stance,

Market analysts are eyeing a lower US CPI print moving ahead. In a February 11 market report, 10x Research head of research Markus Thielen said: “There is a real possibility of a lower print, which could ignite another rally attempt.”

Thielen mentioned that most market participants are anticipating a 2.9% year-on-year (YoY) inflation rate in the US Bureau of Statistics report due on February 12. However, he noted that the US Truflation Inflation Index, a real-time tracker, has dropped from 3.0% to 2.1%. This indicates that inflation pressures might be easing more quickly than expected. “If US CPI surprises to the downside at 2.7% or 2.8%, Bitcoin price could see a relief rally,” he said.

Thielen further added that this was the reason why the Bitcoin price surged in January, as market participants anticipated a “third consecutive month of rising CPI.” However, the 2.9% inflation print, which remained unchanged from December, took them off-guard.

Will Bitcoin Price Stage Rally to Fresh All-Time Highs?

Thielen noted that last month, in January, the Bitcoin price surged by another $10,000, moving past $100K levels once again to $106K before retracing back. He expects a similar development in the case of easing inflation that could propel BTC to new all-time highs. As of press time, the Bitcoin price is trading 2% down at $96,154, with its market cap at $1.906 trillion.

Additionally, investor expectations and mood also remain high for now. Benjamin Cowen, founder of Into The CryptoVerse, conducted a poll on X on February 11, asking where Bitcoin’s price would go after the CPI release. At the time of publication, 51.7% of the 12,397 voters chose “up.” Furthermore, as highlighted in our previous article, investor attention is shifting back to Bitcoin once again.

MN Capital founder Michaël van de Poppe recently stated that Bitcoin could reach new all-time highs within weeks, following gold’s recent run of strong all-time highs, as noted in our earlier post.