Easing inflation could ignite another BTC rally: 10x Research

Crypto market participants are expecting no change in the upcoming US Consumer Price Index, but a lower print is possible and could trigger an uptick in Bitcoin’s price, says a crypto analyst. 

“There is a real possibility of a lower print, which could ignite another rally attempt,” 10x Research head of research Markus Thielen said in a Feb. 11 market report.

Bitcoin rally may emerge if CPI “surprises to the downside”

Thielen said that most market participants expect a 2.9% year-on-year (YoY) inflation rate in the US Bureau of Statistics report set to be released on Feb. 12.

However, he said that the US Truflation Inflation Index — a real-time inflation tracker — has declined from 3.0% to 2.1%, which suggests that inflation pressures “may be easing faster than expected.”

“If CPI surprises to the downside at 2.7% or 2.8%, Bitcoin could see a relief rally,” he said.

He explained that this was why Bitcoin (BTC) surged in January — market participants had expected a “third consecutive month of rising CPI,” but the 2.9% inflation print, unchanged from December, caught them off guard.

He said this “relieved the market,” sparking a $10,000 surge in Bitcoin’s price and pushing it back above the key $100,000 level — until US President Donald Trump’s imposed tariffs on Canada, Mexico and China, which “halted the momentum.”

Another $10K Bitcoin rally will bring it closer to peak price

A similar $10,000 rally would send Bitcoin to $105,491, just 3.5% shy of its $109,000 all-time high, briefly tapped on Jan. 20 ahead of Trump’s inauguration.

Bitcoin is trading at $95,490 at the time of publication, down 2.65% over the past seven days, according to CoinMarketCap.

Related: New Bitcoin miner ‘capitulation’ hints at sub-$100K BTC price bottom

Into The CryptoVerse founder Benjamin Cowen ran a Feb. 11 poll on X asking where Bitcoin’s price will go after the CPI release — 51.7% of the 12,397 voters had chosen “up” at the time of publication.

MN Capital founder Michaël van de Poppe recently said Bitcoin could hit new all-time highs within weeks, following gold’s recent streak of strong all-time highs.

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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.