News View Non-AMP

Bitcoin Eyes CPI Data Today: Fed Policy & Price Impact Explained

Published by
Qadir AK

Bitcoin (BTC) is stuck in a tight range between $90,000 and $110,000, unable to break free. Despite multiple attempts to push higher, it keeps getting pulled back. So, what’s holding Bitcoin down?

The answer lies in a mix of economic uncertainty, U.S. inflation concerns, and the Federal Reserve’s next move. Investors are on edge, waiting for clues that could either send Bitcoin soaring or drag it lower. With a key inflation report coming up and speculation around interest rates growing, BTC’s next move could be just around the corner.

Here’s what you need to know.

Investors Wait for Clarity

In the past 24 hours, Bitcoin’s market cap has fallen to $1.9 trillion. Last year, the crypto market took a hit after hawkish comments from the Federal Reserve, but BTC partially recovered in January after Donald Trump’s inauguration and growing attention on his Bitcoin reserve plan.

Right now, investors are uncertain. Many are waiting for clearer crypto regulations before committing to a full-scale rally.

Economic Reports to Watch

The upcoming U.S. Consumer Price Index (CPI) report will reveal how much prices have risen and could influence Bitcoin’s next move. If inflation comes in lower than expected, investor confidence may rise, pushing Bitcoin slightly higher.

Economists predict a 0.3% increase in CPI from last month, slightly lower than December’s 0.4%. Core inflation, which excludes food and energy prices, is expected to rise by 0.3%, up from 0.2% in December.

While this might sound positive, it may not be enough to trigger a major Bitcoin rally. Investors are watching closely to see if softer inflation will push the Fed to cut interest rates – something that would benefit Bitcoin. However, that’s unlikely to happen soon.

Federal Reserve Still Holding Bitcoin Back

The Federal Reserve plays a crucial role in Bitcoin’s price movement. Even if inflation cools, the Fed is in no rush to cut interest rates. Fed Chair Jerome Powell recently made it clear that rate cuts aren’t coming quickly. Major financial firms like BlackRock and RBC also expect the Fed to keep rates high this year.

According to the CME FedWatch tool, there’s only a 54% chance of even one rate cut this year. Without lower interest rates, Bitcoin struggles to gain strong upward momentum since higher rates make traditional investments more attractive compared to crypto.

Rate Cut Expectations Drop – Is Bitcoin in Trouble?

Crypto analyst Neil Sethi noted that the probability of a rate cut by June has dropped below 50% to 48%, while the chance of two cuts in 2025 has fallen to 42%. There’s now a 20% chance of no rate cuts at all, up from 50% after the January FOMC meeting.

Inflation expectations are also rising. Data from Mott Capital Management shows that two-year inflation expectations have climbed to 2.8%, the highest since early 2023. This suggests investors expect prices to keep increasing, making it even harder for the Fed to justify rate cuts. Trade tensions and potential new tariffs are adding to inflation fears.

What’s Next for Bitcoin?

If inflation turns out to be higher than expected, Bitcoin could drop toward the lower end of its range. If inflation is lower, BTC may see a small rally. However, without a clear sign that the Fed will cut rates soon, Bitcoin is likely to stay stuck in its current range for now.

Bitcoin’s next big move hinges on inflation and the Fed – until then, the market remains in wait-and-see mode.

Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

Recent Posts

Ethereum ETH Price Prediction 2025, 2026 – 2030: How High Will Ethereum Go?

Story Highlights The Ethereum price today is . ETH price with a potential surge could…

June 4, 2025

Bitcoin Price Prediction Today: 4th June

As of June 4, 2025, Bitcoin price today is trading around $105,779, showing a modest…

June 4, 2025

Pi Network News: Is Pi Coin Price Up for a Breakout or a Breakdown?

Pi Network News is once again in the trend list as its token struggles to…

June 4, 2025

U.S. Economy Is a Ponzi Scheme, Says Max Keiser in $2.2M Bitcoin Prediction

In a fiery exchange on X, American filmmaker and Bitcoin advocate Max Keiser stirred the…

June 4, 2025

Ethereum Price on the Edge: Vitalik, Whales, and Analysts Hint at a Breakout?

According to Lookonchain, a whale has acquired 108,278 ETH, worth about $283 million. This closely…

June 4, 2025

Chainlink Price Prediction 2025, 2026 – 2030: Will LINK Price Reach $100?

Story Highlights The live price of the LINK token is . Price prediction for 2025…

June 4, 2025