#CryptoCPIWatch

The price of Bitcoin has dropped to around $102,662.30, likely attributed to profit-taking near the resistance level of $106,000. Traders are now focusing on the U.S. Consumer Price Index (CPI) data, which could significantly impact cryptocurrency prices.

*Key factors affecting the cryptocurrency market:*

- *U.S. Consumer Price Index data*: A lower reading of the Consumer Price Index could enhance bullish momentum, potentially leading to a decrease in interest rates. Conversely, a higher-than-expected number may strengthen the dollar and negatively impact cryptocurrency prices.

- *Institutional demand*: Companies acquired over 157,000 Bitcoins in 2025, driven by accumulation strategies similar to MicroStrategy. This demand exceeds the supply from mining companies, contributing to a supply shortage.

- *ETFs and Bitcoin dominance*: Bitcoin ETFs saw net inflows of $934 million over the past month, reinforcing Bitcoin's dominance as a comprehensive and long-term hedging asset.