Bitcoin Stuck in Range as US CPI and Powell Testimony Loom

Bitcoin (BTC) price action remains rangebound this week, with traders anticipating a sudden move on "very thin" liquidity. As the broader trading range persists, market participants are keeping a close eye on several key events, including US Consumer Price Index (CPI) data and testimony from Federal Reserve Chair Jerome Powell.

Tariff talk has resurfaced, this time involving a range of US trading partners. While gold has benefited from the uncertainty, Bitcoin has yet to capitalize on safe-haven demand. Whales continue to distribute BTC, with daily distribution volumes nine times higher than the yearly average since mid-December.

Analysts are divided on the outlook for Bitcoin. Some, like Michaël van de Poppe, see potential for a market-wide recovery in the coming days, while others, like Poseidon, believe that the range between $90,000 and $110,000 will continue for the next three months.

This week, the US government announced further tariff plans, targeting steel and aluminum. The news has led to weakness in crypto markets, but US stock futures have shrugged off the news, unlike last week's behavior. Gold has tagged multiple new all-time highs, but Bitcoin has struggled to pull away from the precious metal.

Bitcoin investor cohorts have displayed divergent behavior at current price levels. Retail investors have upped BTC buying activity, while whales have been reducing exposure since BTC/USD first hit $100,000 in Q4 last year. Spot selling pressure on exchanges is now at its highest since the collapse of crypto hedge fund Three Arrows Capital, but the price remains close to $100,000.

Despite the mixed signals, some analysts remain bullish on Bitcoin's prospects. Bill Barhydt, founder and CEO of crypto asset manager Abra, predicts that Bitcoin will embark on a trip to its cycle top of $700,000 starting in Q1 this year, driven by a massive liquidity injection from the US government. Other bullish predictions for Bitcoin include a trip to $1 million by 2030 and beyond.