Market Reacts to CPI Increase With Bitcoin Volatility

According to Odaily, QCP Capital reported that buying on dips emerged as a successful strategy amid market fluctuations following the release of the Consumer Price Index (CPI) data. The overall CPI increase exceeded expectations, with core CPI also rising. This shift altered market expectations, leading to a significant sell-off as the market now anticipates the Federal Reserve will delay its first rate cut of the year to December. Bitcoin experienced a sharp decline from $96,500 to $94,000, resulting in the liquidation of $163 million in long positions. However, BTC found support at $94,000 and rebounded strongly during the New York trading session, reaching $98,000, marking a net increase of 4.4%. In the options market, call options remained popular, particularly those expiring soon on February 14, Friday, which dominated trading volume. Over the past 24 hours, call options with strike prices between $97,000 and $100,000 were the most favored. Overall, the market appears to be awaiting U.S. President Donald Trump's response to the CPI increase. It remains to be seen whether he will continue to advocate for further rate cuts by the Federal Reserve this year or allow the Fed to make policy decisions based on data. Considering Trump's aim for a legacy of a soft economic landing, it is expected that Federal Reserve Chair Jerome Powell will maintain a cautious approach and adhere to a data-dependent stance before proceeding with rate cuts.