Bitcoin Price Analysis: BTC Regains Ground As US CPI Numbers Soften Bearish Sentiment

Bitcoin (BTC) regained ground and surged past $84,000 as inflation data revealed a sharper-than-expected decline, reinforcing hopes the Federal Reserve would ease monetary policy sooner than expected. 

The flagship cryptocurrency is up nearly 3% over the past 24 hours, trading around $82,700 after reaching a high of $84,467. 

Bitcoin (BTC) Jumps Past $84,000 After Softer-Than-Expected Inflation Data 

According to a report from the Bureau of Labor Statistics, The US Consumer Price Index registered an increase of 0.2% in February. The market expected a 0.3% increase, with January registering a 0.5% increase. On a year-on-year basis, the headline CPI was higher by 2.8% against the expected 2.9% and January’s 3%. Core CPI numbers increased 0.2% in February against the forecasted 0.3% and January’s 0.4%. On a year-over-year basis, Core CPI numbers were at 3.1% against the expected 3.2% and January’s 3.3%. 

Bitcoin (BTC) rallied past $84,000 minutes after the data was released, with traditional markets also registering a substantial increase. The markets, including crypto, have endured a difficult few weeks as prices crashed because of macroeconomic conditions, tariffs, and fears of a trade war with China. Inflation also remained stubbornly above the Federal Reserve’s 2% target, raising doubts about the ability of the central bank to ease policy to combat sluggishness. Markets will now look forward to Thursday’s Producer Price Index (PPI) report. 

Metaplanet Plans To Increase Bitcoin Holdings 

Metaplanet has announced another debt offering to Evo Fund of two billion yes ($13 million). These zero-coupon bonds do not pay interest, which sets them apart from traditional bonds. The money raised with the debt offering will be used to purchase more BTC. The terms state that Evo Fund can demand a full bond repayment before maturity. Metaplanet has emerged as one of the top corporate holders of Bitcoin, with the value of its holdings approaching $1 billion. The company’s stock experienced significant gains last year, rising a staggering 4,000%. The company announced last month that its hotel business operating profits registered a growth of 44% in 2024. 

Earlier today, the company announced the purchase of 162 BTC. The company’s CEO, Simon Gerovich recently spoke of his concerns about not having enough time to purchase BTC. 

“Most people, I think, are a little bit lazy, they are short-term focused. They wanna buy something that can immediately go up 100X, which is why everyone is looking for the next shiny coin. What's the next Bitcoin? There's no next Bitcoin...Every time I think about Bitcoin, I get really nervous that we’re running out of time.”

Spot Crypto ETFs Remain Under Pressure 

Crypot ETFs remained under pressure as traders continued to reassess their positions in the funds. Data from Sosovalue revealed Bitcoin ETF funds registered net outflows of $371 million on Tuesday, marking the seventh consecutive day of withdrawals. BlackRock’s IBIT registered outflows of $151 million, with Fidelity’s FBTC registering outflows of $107 million. Grayscale’s GBTC also registered substantial outflows of over $35 million. Franklin Templeton’s EZBC registered outflows of $33.7 million, while Wisdomtree’s BTCW saw outflows worth $15 million. Invesco’s BTCO, Bitwise’s BITB, Valkyrie’s BRRR, and VanEck’s HODL also registered substantial declines. 

Bitcoin (BTC) Price Analysis 

Bitcoin (BTC) held steady above $80,000 after recovering from Monday’s substantial decline. The flagship cryptocurrency plunged to a low of $77,414 on Monday and fell further to $76,635 on Tuesday, raising fears of a deeper correction. While many in the market were worried, Arthur Hayes said he believes BTC will likely bottom around the $70,000 mark, a 36% correction from its all-time high. However, he added that such corrections are normal in a bull market. Hayes urged investors to remain patient, with the former BitMEX CEO noting that once BTC hits $70,000, traditional financial markets would need to experience a sharp decline, accompanied by failures in major financial institutions. According to Hayes, this would force central banks to initiate quantitative easing, creating an optimal buying opportunity. 

“Then you load up the truck. Traders will try to buy the dip. If you are more risk averse, wait for the central banks to ease, then deploy more capital. You might not catch the bottom, but you also won’t have to mentally suffer through a long period of sideways and potential unrealized losses.”

BTC registered a sharp decline on Monday, falling nearly 9%, slipping below $90,000 and the 20-day SMA to $86,225. The price fell to an intraday low of $81,500 on Tuesday as selling pressure intensified. However, it recovered from this level to register an increase of 1.27% and settled at $87,316. Bullish sentiment intensified on Wednesday as BTC rose nearly 4% to reclaim $90,000 and settle at $90,639. The price lost momentum on Thursday, encountering volatility as buyers and sellers struggled to establish control. Sellers ultimately gained the upper hand as BTC dropped nearly 1%, slipping below $90,000 and settling at $89,957. Selling pressure intensified on Friday as the price fell almost 4% to settle at $86,781.

Source: TradingView

BTC remained in the red over the weekend, registering a marginal decline on Saturday and settling at $86,267. Bearish sentiment intensified on Sunday as BTC plunged below the 200-day SMA and $80,000, falling to a low of $79,987 before settling at $80,736, ultimately registering a drop of 6.41%. Buyers attempted a recovery on Monday as BTC surged to an intraday high of $84,075. However, it lost momentum after reaching this level and fell 2.62% to $78,620, but not before dropping to a low of $77,414. Sellers pushed BTC to a low of $76,635 on Tuesday. The price recovered from this level as market sentiment eased, rising 5.50% to reclaim 80,000 and settle at $82,945. The current session sees BTC down nearly 2% and trading at $81,330. If sellers retain control, BTC could slip below $80,000. Buyers will look to regain control and push the price above the 200-day SMA and $85,000.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.