Recent reports on the Consumer Price Index (CPI) have significantly influenced Bitcoin's price. This article examines current market trends and potential future scenarios.
Impact of CPI Reports on Bitcoin Price
Bitcoin has continuously faced selling pressure following the release of Consumer Price Index (CPI) reports, with recent data showing an average decline of about 9%. Analyst Ali Martinez noted that every CPI update in recent months has led to a sharp drop in prices. For instance, in June 2025, Bitcoin fell by 10.83%, in July by 6.95%, and in August by 10.64%. These findings suggest that traders are cautious about how inflation readings may impact Federal Reserve policy and high-risk assets.
Short-Term Market Fluctuations
Analyst Ted observed that in the last three releases, Bitcoin rose before the CPI announcement only to fall immediately afterward. He stated that "The current price action of $BTC is exactly mimicking past CPI data." It is suggested that if this trend continues, Bitcoin could face another round of selling after the next CPI figures are published. In contrast, some traders anticipate a change in trend based on technical analysis.
MVRV Analysis and Potential Turning Points
On-chain metrics also indicate a potential market turning point. Analyst ChainSpan reported that Bitcoin’s Market Value to Realized Value (MVRV) ratio is close to crossing, which has historically coincided with significant market shifts. Past movements in this indicator were followed by strong fluctuations. Although the current level suggests a potential bullish wave, it is not considered cheap by historical standards.
Given the current data on Bitcoin's dynamics and market indicators, traders should remain alert to potential fluctuations and trend changes in response to new CPI reports.
