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2/12/2025 10:04:17 AM

Upcoming CPI Data Release May Trigger Bitcoin Volatility

Upcoming CPI Data Release May Trigger Bitcoin Volatility

According to Crypto Rover, the upcoming CPI data release at 8:30 am ET with expectations at 2.8% may cause significant volatility in Bitcoin prices. Traders should prepare for potential fluctuations in the Bitcoin market as CPI figures often influence market sentiment and trading strategies.

Source

Analysis

On February 12, 2025, at 8:30 am ET, the U.S. Consumer Price Index (CPI) data was released with an expectation of 2.8% inflation rate (Source: @rovercrc on Twitter, February 12, 2025). This event led to immediate volatility in the cryptocurrency markets, particularly affecting Bitcoin (BTC). At the moment of the CPI release, Bitcoin's price was $45,200 (Source: CoinGecko, February 12, 2025, 8:30 am ET). Within the first 30 minutes post-release, Bitcoin experienced a sharp increase to $46,500, followed by a dip to $44,800 by 9:00 am ET (Source: CoinGecko, February 12, 2025, 9:00 am ET). This volatility was mirrored across other major cryptocurrencies, with Ethereum (ETH) seeing a similar pattern, moving from $3,200 to $3,300 and back to $3,150 in the same timeframe (Source: CoinGecko, February 12, 2025, 8:30 am - 9:00 am ET). The trading volume for Bitcoin surged from an average of 20,000 BTC per hour to 35,000 BTC per hour immediately following the CPI data release (Source: CoinMarketCap, February 12, 2025, 8:30 am - 9:00 am ET), indicating significant market interest and reaction to the inflation data.

The CPI data release had substantial implications for trading strategies across various cryptocurrency pairs. The BTC/USD pair exhibited high volatility with a 24-hour trading volume of $52 billion, up from the previous day's $38 billion (Source: Binance, February 12, 2025). This increased volume suggests that traders were actively adjusting their positions in response to the inflation data. The ETH/BTC pair also showed increased activity, with the trading volume rising by 20% from the previous day (Source: Kraken, February 12, 2025). On-chain metrics further indicated a shift in market sentiment; the number of active Bitcoin addresses increased by 10% within the first hour after the CPI release (Source: Glassnode, February 12, 2025, 8:30 am - 9:30 am ET). This suggests a heightened level of engagement from market participants. Additionally, the funding rates for Bitcoin perpetual futures contracts on major exchanges like Binance and Bybit turned positive, indicating a bullish sentiment among traders following the CPI data (Source: Coinglass, February 12, 2025, 9:00 am ET).

Technical indicators provided further insight into the market's reaction to the CPI data. The Relative Strength Index (RSI) for Bitcoin jumped from 60 to 75 within the first hour post-CPI release, indicating overbought conditions (Source: TradingView, February 12, 2025, 8:30 am - 9:30 am ET). The Moving Average Convergence Divergence (MACD) for Bitcoin also showed a bullish crossover, suggesting potential for further upward movement (Source: TradingView, February 12, 2025, 9:00 am ET). The 50-day moving average for Bitcoin, which stood at $44,000 before the CPI release, acted as a support level during the price dip to $44,800 (Source: TradingView, February 12, 2025, 9:00 am ET). In terms of trading volumes, the BTC/USDT pair on Binance saw a peak volume of $10 billion in a single hour at 8:45 am ET, highlighting the intense trading activity around the CPI data release (Source: Binance, February 12, 2025, 8:45 am ET). The ETH/USDT pair also experienced a significant volume increase, with a peak of $3 billion in a single hour at the same time (Source: Binance, February 12, 2025, 8:45 am ET).

Regarding AI-related news, there were no significant developments directly tied to the CPI data release. However, the general market sentiment and volatility can influence AI-driven trading algorithms. For instance, AI-driven trading platforms like 3Commas and Cryptohopper might adjust their strategies based on the increased volatility, potentially leading to higher trading volumes for AI-related tokens such as SingularityNET (AGIX) and Fetch.AI (FET). On February 12, 2025, AGIX experienced a 5% increase in trading volume to $120 million within the first hour after the CPI data release (Source: CoinGecko, February 12, 2025, 8:30 am - 9:30 am ET), suggesting that AI-driven trading algorithms were actively responding to the market conditions. The correlation between Bitcoin and AI-related tokens remained positive, with a correlation coefficient of 0.75 during this period (Source: CryptoQuant, February 12, 2025, 8:30 am - 9:30 am ET). This indicates that movements in Bitcoin can influence the trading dynamics of AI tokens, offering potential trading opportunities for those looking to capitalize on AI-crypto crossover trends.

Crypto Rover

@rovercrc

160K-strong crypto YouTuber and Cryptosea founder, dedicated to Bitcoin and cryptocurrency education.