Bitcoin Sees Modest Relief as US CPI Inflation Avoids Surprises

Bitcoin (BTC) broke back above $70,000 around Wednesday’s Wall Street open as US inflation data soothed anxious markets.

Key points:

• Bitcoin bounces around a narrow range as US inflation data offers a modest tailwind.

• Oil prices stay lower as an emergency release of 400 million barrels is confirmed.

• BTC price expectations focus on future liquidations in the mid-$60,000 zone.

Bitcoin edges higher as CPI matches expectations

Data from TradingView showed BTC price action eking out modest gains, while failing to match local highs from the day prior.

The February print of the US Consumer Price Index (CPI) was in line with expectations at 2.4% year-on-year, per data from the Bureau of Labor Statistics (BLS). 

“Over the last 12 months, the all items index increased 2.4 percent before seasonal adjustment,” it confirmed in an official statement.

This was a relief for risk assets already on edge over geopolitical instability and its potential impact on inflation. The Middle East conflict and global oil supply squeeze, however, were likely only to be truly reflected in March’s inflation data.

“The market will now await March’s data,” trading resource The Kobeissi Letter thus wrote in a response on X.

Other recent inflation gauges missed anticipated levels both to the upside and downside, making for a shaky overall picture of inflationary forces even before events in Iran.

Oil, a key risk factor for CPI going forward, stayed below the $90 mark on the day as the International Energy Agency (IEA) approved the emergency release of 400 million barrels — the largest such release ever recorded. 

Trader eyes BTC price breakout in March

With price still rangebound, Bitcoin market participants chose not to bet big up or down.

Related: Bitcoin faces ‘highly volatile’ setup as bulls eye return to $80K by month-end

“Very simple; buy the lower bounds, sell the higher bounds,” trader Michaël van de Poppe told X followers. 

Trader Lennaert Snyder eyed downside liquidity for a potential local low, suggesting that this could come at around $65,000.

Data from monitoring resource CoinGlass put 24-hour crypto market liquidations at $240 million, with short positions accounting for a larger slice of the total.