BTC rebounds from lows to $90,000, economic data ignites market hope

The recent cryptocurrency market has been showcasing an independent rally. While US stocks generally declined under pressure, Bitcoin successfully rebounded above $90,000, and Ethereum also regained stability above $3,000. Market sentiment has clearly improved. The driving force behind this rebound is the U.S. release of core CPI data that came in below market expectations.

CPI Below Expectations Drives Rebound

The better-than-expected inflation data sends a strong signal. When the market sees that inflation pressures are not as strong as anticipated, expectations for Federal Reserve policies are also adjusted accordingly. Investors begin to reassess the direction of January’s interest rate decisions, and confidence in unchanged rates loosens. After a week of bearish gloom, this positive signal has stimulated investors’ bullish intentions, leading to a noticeable rebound in the crypto market.

In contrast, why are US stocks still falling? In short, this is a normal technical correction. Looking back over the past week, US stock indices hit new highs during the ongoing decline in the crypto market, with gains already quite substantial, necessitating a necessary pullback for digestion. The same logic applies to the crypto market: a bottom will naturally see a rebound, and overextended gains will inevitably require adjustment.

Iran Situation Becomes a Hidden Variable

Geopolitical risks have surfaced in recent days. Trump announced support for protests against Iran, raising market expectations of potential military conflict. This factor was first reflected in the crypto market, with US stocks following suit and declining afterward, indicating that the crypto market is more sensitive to changes in risk sentiment.

Trading Window Before PPI Release

Tonight, the US will disclose the Producer Price Index (PPI), and several Federal Reserve officials will also make policy statements. These economic data and official remarks could trigger market volatility. However, the current market focus remains on developments in Iran. If the US or Israel confirms military action against Iran, the crypto market will likely face adjustment pressure. But once geopolitical tensions clarify, opportunities for market rebound will also emerge.

For traders, the coming days may be a crucial window to watch closely. Before geopolitical clarity is achieved, each rebound could be a good opportunity to build positions.