#CryptoCPIWatch The crypto market is closely watching the US Consumer Price Index (CPI) data release, which could significantly impact market trends. Here's what's happening:
*Key Highlights:*
- *Bitcoin's Price Movement*: Bitcoin recently touched $105,700 before retreating by 3% to $102,662.30, indicating potential profit-taking near the $106,000 resistance level.
- *CPI Data Expectations*: The CPI inflation report is expected to show a 2.9% year-over-year inflation rate, down from 3.0%, while the core inflation rate is expected to be 3.2%, slightly lower than the previous 3.3%.
- *Market Sentiment*: A softer CPI print could reignite bullish momentum, while a higher-than-expected number might strengthen the dollar and weigh on crypto prices.
- *Institutional Demand*: Despite the dip, institutional demand for Bitcoin remains strong, with corporations acquiring over 157,000 BTC in 2025, led by MicroStrategy-style accumulation strategies ¹ ².
*Market Trends:*
- *Bitcoin Dominance*: Bitcoin dominance surges to 62%, asserting itself as a safe haven and diverging from the rest of the market.
- *Altcoin Performance*: Altcoins are mixed, with Ripple (XRP) rising 4% and leading altcoin gains, while Ethereum (ETH) slipped below the $2,600 mark.
- *Macroeconomic Risks*: Macroeconomic risks, including Trump's trade wars and Canada's bond sale, are driving market uncertainty ² ¹.
*What's Next?*
The market is bracing for volatility, and the CPI data release will likely dictate market direction. A lower-than-expected CPI print could fuel a risk-on rally, while a hotter-than-expected report might reinforce rate-hike concerns, pressuring markets further ².
