Bitcoin's Price Surge Looms as Inflation Data Hints at Relief Rally

Bitcoin's price could experience another rally if upcoming inflation data surprises to the downside, according to 10x Research. The crypto market is anticipating no change in the US Consumer Price Index (CPI) report, but a lower print could trigger an uptick in Bitcoin's price.

Markus Thielen, head of research at 10x Research, believes there is a real possibility of a lower CPI print, which could ignite another rally attempt for Bitcoin. Most market participants expect a 2.9% year-on-year (YoY) inflation rate in the upcoming report, but the US Truflation Inflation Index has declined from 3.0% to 2.1%, suggesting that inflation pressures may be easing faster than expected.

If the CPI surprises to the downside at 2.7% or 2.8%, Bitcoin could see a relief rally, according to Thielen. This would be similar to the surge in Bitcoin's price in January, when market participants had expected a third consecutive month of rising CPI, but the 2.9% inflation print, unchanged from December, caught them off guard and relieved the market.

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 currently trading at $95,490, down 2.65% over the past seven days.

A poll conducted by Into The CryptoVerse founder Benjamin Cowen on X asked where Bitcoin's price will go after the CPI release. At the time of publication, 51.7% of the 12,397 voters had chosen "up." MN Capital founder Michaël also believes that Bitcoin could hit new all-time highs within weeks, following gold's recent streak of strong all-time highs.