CandleFocus

Will This Week’s CPI Figures Keep Bitcoin on Track to $200,000?

The December Consumer Price Index (CPI) is anticipated to show a 2.9% year-over-year increase and a 0.3% monthly rise, which is crucial for understanding inflation trends that can impact Federal Reserve monetary policy. Lower inflation could lead to rate cuts and favor assets like Bitcoin, while high inflation could delay monetary easing. Traders are divided on the Fed's rate cut trajectory for 2025. Trump's team's plans to weaken the dollar and lower interest rates could benefit Bitcoin and crypto. Some traders expect no rate cuts in 2025 due to concerns about inflation staying above the Fed's target. However, CryptoQuant predicts Bitcoin could reach $145,000 to $249,000 by year-end based on favorable macroeconomic trends, a pro-crypto US administration, and historical patterns. Institutional adoption of Bitcoin is growing. The CPI data release could heavily impact market sentiment and Bitcoin's trajectory.

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