Rising inflation data is largely “baked in” to Bitcoin prices ahead of the upcoming March consumer price index release, according to analysts at exchange-traded product issuer 21Shares.
The February CPI report showed shelter prices rising 0.2%, food increasing 0.4%, and energy climbing 0.6%, while the core index excluding food and energy rose by 0.2%, according to data from the US Bureau of Labor Statistics.
“What matters now is the Fed’s reaction function to the coming higher CPI prints,”
Said Stephen Coltman, head of macro at 21Shares.
Crypto markets showed resilience following the inflation data, with the Total 3 market capitalisation index, excluding Bitcoin and Ether, falling by roughly 1% from an intraday high of about $722 billion.
Analysts expect Bitcoin to remain rangebound between $68,000 and $74,000 in the near term, though a breakout above the $75,000 resistance level could open the path toward a consolidation range between $75,000 and $80,000.
Historical market patterns suggest Bitcoin often rebounds by roughly 15% following major geopolitical shocks, which could place the asset in the $77,000 to $80,000 range.
Only about 0.6% of traders expect the Federal Reserve to cut interest rates from the current 3.50% to 3.75% range at the March 18 Federal Open Market Committee meeting, according to the CME FedWatch tool.
At the time of reporting, Bitcoin price was $70,196.44.