CPI lower than expected may boost Bitcoin, but overall economic situation remains dominant

According to a report by Golden Finance, institutional analysis suggests that for Bitcoin investors, tonight's US January CPI report may have a significant impact on market direction. If CPI is lower than expected, especially after deducting core data for food and energy, it may enhance the hope of the Federal Reserve relaxing interest rates. This may weaken the US dollar and make the yield of US treasury bond bonds more attractive, which may boost the demand for riskier assets such as Bitcoin. However, those who crave a significant increase in cryptocurrency prices may need to lower their expectations. Although the cooling of CPI may provide a temporary boost, the overall economic situation remains the dominant factor. CoinDesk believes that as inflation is expected to continue to be the focus and the Federal Reserve remains cautious, the price trend of Bitcoin may be limited to the narrower end of the $90000 to $110000 trading range, especially if the CPI report shows higher than expected data. (Golden Ten)