Bitcoin Crosses $69,000 After Lower US CPI

How far will it fall before reaching the heights again? The question torments investors. However, bitcoin is now flirting with its 2021 ATH of $69,000. The psychological threshold. That of past records. A lucky Friday the 13th. The American economy has spoken. Inflation is slowing. And crypto is jumping. The markets are holding their breath. How long will it last?

Inflation and bitcoin: the duo that is shaking the American economy

First, the number that changes everything after the expiration of $3 billion in Bitcoin and Ethereum options. The American Consumer Price Index falls to 2.4% in January. Below the expected 2.5%. The core CPI slipped to 2.5%. Its lowest level since March 2021. The Kobeissi Letter exults on X:

Core CPI inflation is now at its lowest level since March 2021. The chances of further rate cuts are rising.

The market reacts quickly. Bitcoin jumped 4% in a few hours. He earns $69,190 on Bitstamp. The famous threshold. The one that makes the screens shake. Traders are exultant.

However, the American economy is not saved. Far from it. Households are still suffering. Prices for services are rising. Customs tariffs threaten. But crypto reads the numbers in its own way. She sees it as a promise of future liquidity.

A half-open door to lower rates. A breath of fresh air in a suffocated market. It remains to be seen whether this reading is lucid or just a white lie.

69,000 dollars, the wall that freaks out bitcoin traders

Second, the wall. Because $69,000 is not just a round number. This is the old all-time high for 2021. It is also the 200-week exponential moving average. A formidable technical area. A cemetery of orders stopped dead in their tracks. Daan Crypto Trades observes mechanics :

BTC is still consolidating in this descending wedge. He attempted an exit yesterday but was hit back at 68,000. This is the area to watch for a possible new leg of increase.

Michaël van de Poppe remains confident. He predicts a “higher low” to come. But he admits the fragility of the moment. The economy is sending out contradictory signals. The monthly core CPI accelerates to 0.3%. Its highest in five months.

The Fed will not move in March. The chances of a rate cut remain below 10%. Bitcoin moves on a thread. Between hope and precipice.

Truflation, the hidden radar that changes the economic situation

Then there's what the mainstream media doesn't see. They look at the official CPI, comment on it, dissect it. Meanwhile, part of the crypto sphere looked elsewhere. André Dragosch, researcher at Bitwise, released a tweet that says it all: “ Not really a surprise if you followed @truflation's CPI figure which has already dipped below 1%… IYKYK “.

Translation: the initiates already knew. While official economists celebrated today's figure, part of the market was constructing its own truth. Alternative data. More in real time. Less politically sensitive.

This distrust of official figures says something profound. Crypto is no longer trusted blindly. She builds her own tools. Its own indicators. His own reading of the economy. The bitcoin rally is not just a mechanical reaction.

It's an act of faith. In data that others don't yet see.

The bitcoin rebound in figures

• CPI January: 2.4%, below the 2.5% expected by economists;
• Core CPI: 2.5%, its lowest level since March 202;
• Bitcoin: +4% in a few hours, up to $69,190;
• Technical resistance: $68,000-69,000, old ATH 2021;
• BTC price at the time of writing: $70,418.

This renewed vigor barely heals the wounds. A few days ago, bitcoin recorded 2.3 billion losses in seven days. The market was bleeding. The fall seemed endless. Today, the soufflé is slowly falling. But every green candle is a promise. The one that resilience will ultimately pay for. The one that cycles, even violent, always end up offering revenge.