BTC can see gains of a soft US CPI edition of the CPI but great risk of risk looks unlikely

The soft report on American inflation will probably be good for risk assets, including Bitcoin (BTC). But those who expect Bik’s fireworks can be disappointed.

The Work Department will publish January Report on Consumer Price Index (CPI) on Wednesday at 13:30 UTC. It is expected to show that life costs increased by 0.3% per month in January, slowing from 0.4% increase of 0.4%, according to Reuters Fxstreet. An annual figure is expected to be aligned from 2.9% of 2.9%.

Basic inflation, which gives the volatile food and energy component, is forecasting to 0.3% per month-per month of 0.2%, resulting in an annual reading of 3.1%, from December 3.2%.

Data on expected from the expected, especially the basic figure, will probably increase expectations for further federal reserves (Fed) interest rates, which could lead to the lower returns of the treasury and a lower index, in the end, increasing demand for risky assets. According to the CME’s FevoTch tool, the market currently estimates 54% chance that it will be fed or reduce interest rates once or not in all this year.

While potential adjustment of reducing rates of supply rates could be raised by BTC, there will probably not be the only catalyst for breaking during consolidation between 90,000 and $ 110,000.

This is due to market metrics that look forward to greater inflation in the coming months in the middle of trade fears, suggesting that it is Fed may have a limited window to apply aggressive rates.

Data followed by Mottom Management Capital It shows that two-year replacement inflation climbed at almost 2.8%, highest since the beginning of 2023. years. The five-year-old Swap is to exhibit a similar trend. The higher inflation replacements indicate that the market expects that inflation rates will grow in the future, encouraging investors to pay higher premium to protect against the potential purchase loss of strength by entering the SVAP contract.

In other words, the current UPTICK in these meters indicates that inflation progress towards FED’s 2% of the goal and prices are likely to increase over the coming years, probably due to Trump tariffs.

In addition, some investment banks believe that soft January CPI reading will not see how you feed away from your Hakish soldiers. In his testimony, Congress on Tuesday, the chairman of Jerome Powell said that the central bank did not rush to cut rates.

“We do not expect progress in inflation to add an additional interest rate from Ferisal this year,” Sunday Weekly Note of the RBC, adding that January report will display limited pressure relief.

Blackkrock said persistent inflation services would be held by Fed from cutting rate.

“We get the American CPI for January this week. Even as a CPI CPI report, the wage pressure remains above the level that would allow inflation to the federal reserves. We see persistently inflation services that She forced the fed to work in the rate for a long time, “Blackrock said.

Finally, BTC can be closer to the lower end of its 90k trading range, if the CPI prints warmer than expected.