CPI lower than expected may boost Bitcoin, but the overall economic situation is still dominant

Odaily reports that according to institutional analysis, the US January CPI report tonight may have a significant impact on the market direction for Bitcoin investors. If the CPI is lower than expected, especially the core data excluding food and energy, it may strengthen the hope of the Federal Reserve easing interest rates. This could weaken the US dollar, making US Treasury yields more attractive, which may boost demand for riskier assets like Bitcoin. However, those eager for a significant rise in cryptocurrencies may need to lower their expectations. While a cooling CPI may provide a temporary boost, the overall economic situation remains the dominant factor. CoinDesk believes that as inflation is expected to remain a focus, the Federal Reserve's cautious stance may limit Bitcoin's price movement to a relatively narrow range of $90,000 to $110,000, especially if the CPI report shows higher-than-expected data. (Jin Shi)