The largest crypto asset is showing impressive resilience despite the hot CPI print.
While major US stock indices, including the S&P 500 and Dow Jones closed Wednesday in the red, the Bitcoin price is up by nearly 2% over the past 24 hours.
After dipping to $94,200 following the January CPI release, BTC is trading at $98,000 at press time.
Some analysts view Bitcoin’s resilience as a sign that the crypto bottom could be in. However, the asset still faces key resistance levels as the macroeconomic outlook remains extremely murky.
Some smart money investors are already hedging against further downside volatility, shifting into low-cap assets with minimal correlation to the broader market.
Hot CPI Print Clouds Bitcoin’s Bullish Outlook
The US Consumer Price Index for January came out hotter than expected. The headline data increased by 3.0% annually, above the expected 2.9% figure. Meanwhile, the core CPI—which excludes food and energy prices—came out at 3.3%, higher than the 3.1% consensus.
The headline CPI has risen for four consecutive months, moving further away from the Federal Reserve’s 2% target.
Considering the hot CPI print, the Bitcoin price fell to $94,200 as the long-term treasury yields and the US Dollar showed strength.
Sticky inflation data suggests that Donald Trump’s escalating trade war could weigh on the crypto bull market. Following today’s CPI, interest rate traders have already pushed back expectations for a Fed rate cut from September to December.
However, the Bitcoin price is showing impressive resilience, climbing back to $98,000 at press time. Experts note that the largest cryptocurrency has now survived the DeepSeek FUD, Trump’s trade war, geopolitical tensions and a bad CPI print without ever falling below the $90,000 mark.
US President Donald Trump has once again called for the Fed to cut interest rates, which could pave the way for a broad-based crypto rally. However, it remains unlikely that Fed Chair Jerome Powell would comply.
Is The Bottom In For Crypto And Bitcoin?
The last five CPI releases have marked Bitcoin’s local bottom each time. Could Wednesday’s release make it six in a row?
Prominent analysts are exercising caution. The CPI data was largely in line with the market expectation on the previous occasions.
More importantly, the Bitcoin price recovery to $98,000 could be a dead-cat bounce. Experts suggest that the initial market reaction to major macroeconomic data usually reflects true sentiment, while the subsequent opposite move is often a trap for late longs and shorts.
For instance, BTC’s weekly RSI is showing signs of a bearish divergence.
It could be possible that Bitcoin sees another correction and tests the $91.2k support level.
Smart Money Investors Pivot To Stablecoins, Low-Cap Crypto
Several smart money investors have shifted their focus to low-cap crypto assets in the short term, considering they show little correlation to the broader market outlook.
For instance, a new meme coin, BTC Bull (BTCBULL), has raised over $1 million in its ICO in just over a day.
As the name suggests, BTCBULL is a Bitcoin-themed meme coin—the combination of BTC’s long-term viability and the meme coin frenzy has resulted in a strong demand.
The project is built on the principle that BTC is undervalued at its current price and will hit $250,000 in this bull cycle and $1 million and beyond in the next. The meme coin simply offers investors an alternative source of income to benefit from Bitcoin’s forward march.
BTC Bull holders will receive free Bitcoin when the BTC price hits set milestones. Moreover, they will also benefit from BTCBULL token burn events and airdrops.
Considering its promise of free Bitcoin, it is no surprise that experts are calling BTC Bull the next 100x crypto.
