US CPI forecast cools down, boosting crypto prices, BTC rebounds to $90,000 level

The cryptocurrency market showed an independent trend yesterday. Against the backdrop of the overall decline in US stocks under pressure, BTC successfully rebounded to around $90,000, and ETH also regained the $3,000 threshold. This upward momentum mainly stems from the US core CPI data release being lower than market expectations, reflecting that inflationary pressures may not be as severe as previously assessed, thereby influencing the Federal Reserve’s subsequent interest rate decisions. This shook the market consensus of maintaining rates unchanged in January and prompted a noticeable rebound in the long-standing sluggish crypto market.

Inflation Data Did Not Meet Expectations, Market Reassesses Rate Expectations

Interestingly, while the US CPI forecast indicators turned positive and cryptocurrencies rose, US stocks experienced a pullback during the same period. The fundamental reason is quite simple—after continuously reaching new highs recently, US stocks have already gained significantly, and technical corrections are needed; the crypto market is similar. After a sharp decline earlier, a rebound is also part of the normal market rhythm. In other words, whether it’s the stock market or the crypto market, they both follow the basic logic that after a rise, a correction is inevitable.

Geopolitical Risks Continue to Ferment, Market Sentiment Still Needs Caution

To trace the deeper reasons behind the US stock decline, it is actually the same as the driving force behind recent sell-offs in the crypto market—geopolitical tensions. Recently, Trump’s camp announced support for protests by Iranian opposition groups, causing the market to be cautious about potential escalation of conflicts. Although this concern was reflected more quickly in the crypto market, US stocks subsequently also experienced a synchronized adjustment.

Upcoming Data and Policy Statements Will Determine Short-term Direction

Tonight, the US will release inflation-related data such as the PPI (Producer Price Index), and several Federal Reserve officials will also make statements. Market volatility is expected to increase. The current focus remains on the development of the Iran situation—if the US or Israel actually deploy troops, even cryptocurrencies will find it difficult to avoid pressure for adjustment; but once the situation settles and uncertainties dissipate, rebound opportunities will emerge. The next few days form a critical time window to watch, as the market may usher in a new round of upward opportunities after risk sentiment eases.