Bitcoin increases by 4% on the back of soft US CPI, which could lead to a March rate-cut.

BitcoinBTC() gained on Friday at the Wall Street opening as an unexpected increase in US inflation boosted sentiment.

The following are key points.

• Bitcoin prices are heading toward key resistance following US CPI inflation numbers that were lower than expected.

• The day’s standout is crypto as the macro-assets react coolly to a slowing of inflation.

• The overall strength of the BTC market is a concern for traders.

Bitcoin surges after weak January CPI figures

The Data of TradingView Bitstamp reported a daily BTC gain of 4% at the time this article was written, and BTC/USD reached $69,190.

This was after January’s US Consumer Price Index (CPI), which fell short of forecasts, showed a renewed upward trend.

Bureau of Labor StatisticsBLS), core CPI matched estimates of 2.5%, while the broader reading was 2.4% — 0.1% lower than anticipated.

In response, the trading resource Kobeissi Letter pointed out that CPI was at a multiyear low.

“Core CPI inflation is now at its lowest level since March 2021,” You can also find out more about us here. wrote Posting on X. 

“Odds of further interest rate cuts are back on the rise.”

Kobeissi spoke of the Federal Reserve’s potential to cut interest rates in its next meeting, scheduled for March. As Cointelegraph reportedMarket expectations were at an all-time low, despite the fact that labor markets have been performing well.

CME Group’s data indicates that after CPI, the odds of an 0.25% reduction remained below 10%. FedWatch Tool.

Andre Dragosch argued, European head for research at Bitwise crypto asset management, that the CPI was actually a rise in inflation when measured by Truflation. “not really a surprise.”

📌Re: CPI release

If you’ve been reading the @truflation CPI numbers that have fallen below 1%…

IYKYK pic.twitter.com/GPEUqaSNZI

— André Dragosch, PhD⚡ (@Andre_Dragosch) February 13, 2026

The US Dollar Index (DXY), which initially fell to 96.4, is now trying to recover.

US stocks have not been able to match the enthusiasm of Bitcoin, and are trading slightly lower than the previous day.

BTC prices are currently in a range between higher and lower.

The outlook for BTC prices was not encouraging, and market participants did little to adjust their expectations. cautious positions.

Related: Binance teases Bitcoin bullish ‘shift’ as crypto sentiment hits record low

“$BTC Still consolidating in this falling wedge,” trader Daan Crypto Trades wrote in his latest X update. 

“Attempted a break out yesterday but got slammed back down at the $68K level. That’s the area to watch if this wants to see another leg up at some point.”

Earlier, Cointelegraph reported On the importance of the $68,000-$69,000 area, which hosts the former 2021 high as well as Bitcoin’s moving exponential average (EMA) for 200 weeks.

“Whether you like it or not: Bitcoin remains to be in an area where I think that we’ll see a higher low come in,” crypto trader, analyst and entrepreneur Michaël van de Poppe predicted in his own forecast. 

“It’s fragile, for sure, but it doesn’t mean that we’re not going to be seeing some momentum coming in from the markets.”