New inflation data from the US could significantly impact bitcoin's price. Changes in the Consumer Price Index (CPI) are expected to affect the Federal Reserve's monetary policy and consequently BTC's valuation.
Impact of Inflation on Bitcoin
According to a report from 10x Research, a drop in the Consumer Price Index (CPI) could trigger a new bullish rally for bitcoin, bringing it closer to its historical peaks. Analysts expect the annual CPI to be 2.9%, but Truflation's data suggest a decrease in inflation to 2.1%, indicating potentially faster diminishing inflation pressures.
Bitcoin Growth Prospects
Bitcoin reserves on exchanges have reached a historically low level of 2.5 million BTC, indicating a scarcity of available supply. This could lead to a supply shock, potentially conducive to a price increase. If this scarcity coincides with a drop in CPI, BTC may see significant price growth soon.
Future Expectations
As the date for US inflation data approaches, many investors keep an eye on indicators to adjust their strategies. The CPI might play a crucial role in determining bitcoin's future price trend.
The CPI data in February could be a decisive factor for bitcoin's price, affecting expectations around the Federal Reserve's policy. Investors keep watching these developments to make informed decisions.
