Bitcoin (BTC) surged on Wall Street on Friday as a fresh US inflation surprise boosted mood.
key points:
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Bitcoin price is moving towards key resistance after US CPI inflation data cooled beyond expectations.
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Crypto becomes a standout on the day as macro assets are seen reacting well to slowing inflation.
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Traders remain cautious on the overall BTC price strength.
Bitcoin surges on soft January CPI data
Data from TradingView shows that the daily BTC price has increased by 4% at the time of writing, with BTC/USD reaching $69,190 on Bitstamp.
The US consumer price index (CPI) bounced back afresh after the January print fell short of expectations.
As confirmed by the Bureau of Labor Statistics (BLS), the core CPI matched the estimate of 2.5%, while the broader reading was 2.4% – 0.1% below the estimate.
Responding, trading resource Kobe Leiter noted that CPI inflation is now at multi-year lows.
“Core CPI inflation is now at its lowest level since March 2021,” a post on Axe read.
“The likelihood of further interest rate cuts is rising again.”
Kobeissi mentioned the possibility of the Federal Reserve cutting interest rates at its next meeting in March. As Cointelegraph reported, market expectations of such an outcome were at an earlier low, not helped by strong labor-market performance.
Following the CPI release, the chances of a minimum 0.25% cut remained below 10%, according to data from CME Group’s FedWatch tool.
Continuing, Andre Dragosh, head of European research at crypto asset manager Bitwise, argued that when viewed through the lens of truflation, an alternative inflation meter, the decline in CPI “was really no surprise.”
📌RE:CPI Release
It’s really no surprise if you’ve been following along @truflation The CPI number which has already fallen below 1%…
IYKYK pic.twitter.com/GPEUqaSNZI
-Andre Dragosch, Ph.D.✓ (@Andre_Dragosch) 13 February 2026
Elsewhere in macro, gold attempted to reclaim the $5,000 an ounce mark, while the US Dollar Index (DXY) sought recovery at 96.8 after an early CPI fall.
On the other hand, US stocks failed to mimic Bitcoin’s enthusiasm, trading marginally lower on the day at the time of writing.
Analysts eye higher low of BTC price’s current range
Considering the outlook for BTC price action, market participants had no reason to change their cautious stance.
Connected: Binance signals bullish ‘turnaround’ in Bitcoin as crypto sentiment hits record low
“$BTC is still consolidating at this declining level,” trader Dan Crypto Trades wrote in his latest X update.
“Attempted to break out yesterday but fell back to the $68,000 level. This is an area to watch if it wants to see another uptrend at some point.”
Earlier, Cointelegraph reported on the importance of the $68,000-$69,000 region, which hosts both the old 2021 all-time high and Bitcoin’s 200-week exponential moving average (EMA).
“Whether you like it or not: Bitcoin is still in an area where I think we’ll hit a higher low,” crypto trader, analyst and entrepreneur Michael van de Poppe predicted in his forecast.
“It’s certainly delicate, but that doesn’t mean we won’t get some momentum from the markets.”
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