Bitcoin Eyes Another Rally as CPI Report Looms

With the U.S. Consumer Price Index (CPI) report set to be released on Feb. 12, crypto analysts are closely watching for any signs that inflation is cooling faster than expected. According to Markus Thielen, head of research at 10x Research, a lower-than-anticipated inflation rate could trigger a Bitcoin rally.

Lower Inflation Print Could Spark a Surge

“There is a real possibility of a lower print, which could ignite another rally attempt,” Thielen noted in his latest market report on Feb. 11. He explained that while most analysts expect the year-on-year CPI to remain at 2.9%, real-time inflation trackers suggest a different picture.

Thielen pointed to the Truflation Inflation Index, which has fallen from 3.0% to 2.1%, indicating that inflationary pressures may be easing more rapidly than official estimates. If the CPI comes in lower, at around 2.7% or 2.8%, Bitcoin could see a relief rally similar to the one in January.

Back then, market participants braced for a third consecutive month of rising inflation. Instead, the CPI held steady at 2.9%, defying expectations and sending Bitcoin soaring by $10,000. However, that momentum was later stalled by former President Donald Trump’s tariffs on Canada, Mexico, and China.

Could Bitcoin Break New Highs?

A repeat of January’s $10,000 surge would push Bitcoin to around $105,491—just 3.5% shy of its $109,000 all-time high, which was briefly reached on Jan. 20 before Trump’s inauguration.

Currently, Bitcoin is trading at approximately $96,100, down 2% over the past week, according to CoinMarketCap. But despite this short-term dip, sentiment in the crypto community remains optimistic.

A recent poll by Into The CryptoVerse founder Benjamin Cowen showed that out of 12,397 voters on X, 51.7% believe Bitcoin’s price will rise after the CPI data release. Similarly, MN Capital founder Michaël van de Poppe recently suggested that Bitcoin could hit new all-time highs within weeks, citing gold’s recent streak of record-breaking prices as a bullish signal.

With inflation trends remaining a dominant force in market movements, all eyes are now on the upcoming CPI report. A lower-than-expected print could inject fresh optimism into the crypto space, potentially setting the stage for another major Bitcoin rally.