The US dollar decoupling drives BTC to reach $90,000, with inflation data becoming a key variable

The US core CPI data came in below expectations, triggering an independent trend in the recent crypto market and US stocks. While US stocks generally softened, Bitcoin and Ethereum moved against the trend, reflecting the subtle interaction between the US dollar and cryptocurrencies. Behind this phenomenon, it indicates that the market is reassessing the Federal Reserve’s policy outlook and also suggests that upcoming economic data releases will continue to dominate market sentiment.

According to the latest data, BTC has currently reached the $89.87K level, with a 24-hour increase of +0.51%; ETH also stabilized above $3.01K, with a gain of +1.04% in the same period. Compared to the previous high of $95K, cryptocurrency prices have pulled back, but the overall trend still shows signs of recovery.

Core CPI below expectations sparks US dollar independent movement

After a week of adjustment, the crypto market experienced a noticeable rebound driven by inflation data. When the Federal Reserve’s announced core CPI did not rise as high as expected, the market began to reassess whether the central bank would keep interest rates unchanged in January. This shift in expectations directly boosted interest-sensitive crypto assets.

In contrast, US stock indices, after reaching new highs in recent days, need to undergo technical corrections. This is a typical market rule of “overextended gains requiring correction”—the same logic applies to cryptocurrencies, where deep declines are often followed by rebounds. The decoupling phenomenon between the US dollar and other assets essentially reflects investors’ divergent expectations about economic prospects: traditional stocks focus on short-term growth risks, while the crypto market is more sensitive to changes in monetary policy.

Geopolitical risks become key variables, upcoming data influence the overall situation

The development of the Iran situation has become another driver of recent market volatility. The Trump administration’s statements supporting opposition protesters in Iran have raised concerns about escalating geopolitical conflicts. Notably, the crypto market tends to react faster to such risk events than traditional financial markets, which explains why the US dollar’s movement may show a time lag.

Tonight, the US will release another important economic indicator—the PPI data—and several Federal Reserve officials will also make statements. Against the backdrop of these key releases, market volatility is expected to further increase. If the US or Israel confirms substantial action against Iran, even the crypto market will find it difficult to avoid short-term adjustments. However, based on historical patterns, once geopolitical tensions clarify, there is often a rebound opportunity.

Volatility contains opportunities; close attention to US dollar interactions is essential

The current market environment offers a rare window for observation. The decoupling of the US dollar, continuous macroeconomic data releases, and rising geopolitical risks weave together into a complex market landscape. In the coming days, closely monitoring the latest Federal Reserve statements and developments in Iran will be crucial for judging market direction.

For investors tracking the crypto market, high volatility often also means more trading opportunities. When market sentiment is overly pessimistic, it can be a sign of an impending rebound. This cyclical pattern has been particularly evident in recent US dollar linkages.