BITCOIN RALLY MAY EMERGE IF CPI "SURPRISE TO DOWNSIDE"
Thielen said that most market participants expect a 2.9% year-on-year (YoY) inflation rate in the US Bureau of Statistics report set to be released on Feb. 12.
However, he said that the US Truflation Inflation Index — a real-time inflation tracker — has declined from 3.0% to 2.1%, which suggests that inflation pressures “may be easing faster than expected.”
“If CPI surprises to the downside at 2.7% or 2.8%, Bitcoin could see a relief rally,” he said.
He explained that this was why Bitcoin ( BTC ) surged in January — market participants had expected a “third consecutive month of rising CPI,” but the 2.9% inflation print, unchanged from December, caught them off guard.
He said this “relieved the market,” sparking a $10,000 surge in Bitcoin’s price and pushing it back above the key $100,000 level — until US President Donald Trump’s imposed tariffs on Canada, Mexico and China, which “halted the momentum.”
