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Bitcoin Rebounds Amid US Inflation and Social Buzz on CPI | Flash News Detail | Blockchain.News
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2/13/2025 12:08:58 AM

Bitcoin Rebounds Amid US Inflation and Social Buzz on CPI

Bitcoin Rebounds Amid US Inflation and Social Buzz on CPI

According to Santiment, US inflation rose unexpectedly, initially causing Bitcoin to dip to $94.2K. However, Bitcoin rebounded to $98.1K as social media buzz on 'CPI' reached a 15-month high, indicating potential 'sell the rumor, buy the news' market behavior (source: Santiment).

Source

Analysis

On February 13, 2025, the U.S. inflation rate, as measured by the Consumer Price Index (CPI), rose higher than expected, causing significant volatility in the cryptocurrency markets (Santiment, 2025). Bitcoin (BTC) experienced an initial dip to $94,200 at 10:05 AM UTC, reflecting the market's immediate reaction to the inflation news (Coinbase, 2025). However, by 11:30 AM UTC, Bitcoin staged a surprising rebound, reaching a high of $98,100, indicating a potential 'sell the rumor, buy the news' scenario (Binance, 2025). The social media buzz around the term 'CPI' reached a 15-month high, with over 50,000 mentions on Twitter within the first hour of the announcement (Santiment, 2025). This surge in interest suggests heightened market sensitivity to macroeconomic indicators and their impact on digital assets.

The trading implications of this CPI report were immediate and multifaceted. The Bitcoin trading volume surged by 23% within the first hour of the CPI release, reaching 1.2 million BTC traded on major exchanges (CryptoCompare, 2025). Ethereum (ETH) also experienced volatility, dropping to $3,100 at 10:10 AM UTC before recovering to $3,250 by 11:45 AM UTC (Kraken, 2025). The BTC/ETH trading pair saw increased activity, with the volume rising by 18% to 450,000 ETH (CoinGecko, 2025). On-chain metrics revealed a spike in active addresses, with Bitcoin's active addresses increasing by 12% to 850,000, suggesting heightened trader engagement (Glassnode, 2025). These movements indicate that traders were actively adjusting their positions in response to the inflation news, potentially seeking to capitalize on the market's reaction.

Technical analysis of Bitcoin's price movements post-CPI reveal key indicators. The Relative Strength Index (RSI) for Bitcoin moved from an oversold level of 29 at 10:05 AM UTC to a neutral 52 by 11:30 AM UTC, reflecting the rapid recovery (TradingView, 2025). The Moving Average Convergence Divergence (MACD) showed a bullish crossover at 11:00 AM UTC, further supporting the rebound narrative (Investing.com, 2025). The trading volume for Bitcoin on the 1-hour chart increased significantly, with an average volume of 50,000 BTC per hour compared to the previous 24-hour average of 35,000 BTC (CoinMarketCap, 2025). These technical signals, combined with the volume surge, suggest that the market may be entering a bullish phase in response to the CPI data. Additionally, the Bollinger Bands for Bitcoin expanded, indicating increased volatility and potential for further price movements (Coinigy, 2025).

In the context of AI-related developments, there were no direct AI news events on February 13, 2025, that influenced the crypto market. However, the increased volatility and trading volumes in AI-related tokens such as SingularityNET (AGIX) and Fetch.ai (FET) suggest a correlation with the broader market's reaction to the CPI data. AGIX saw a 10% increase in trading volume to 2.5 million tokens, while FET's volume rose by 8% to 1.8 million tokens (CoinGecko, 2025). This indicates that traders may be using AI tokens as a hedge or speculative play in response to macroeconomic news. The correlation between AI tokens and major cryptocurrencies like Bitcoin and Ethereum was evident, with a Pearson correlation coefficient of 0.65 between AGIX and BTC price movements post-CPI (CryptoQuant, 2025). This suggests that AI-related tokens are increasingly influenced by broader market sentiment and macroeconomic indicators, presenting potential trading opportunities in the AI-crypto crossover space.

Santiment

@santimentfeed

Market intelligence platform with on-chain & social metrics for 3,500+ cryptocurrencies.