Core CPI data eases, driving BTC to reach the high-end zone

ResearchChadButBroke · 2026-01-22T04:01:33+00:00

The US core CPI data came in below expectations, prompting a rebound in the cryptocurrency market. The easing of inflation influences Federal Reserve policy expectations, bringing positive sentiment, and cryptocurrencies like BTC and ETH have seen gains. Growing geopolitical risks also affect market sentiment, and investors should exercise caution ahead of the upcoming PPI data release and statements from Federal Reserve officials, as short-term volatility may occur.

ResearchChadButBroke

2026-01-22 04:01:33

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The core CPI figures released by the United States were lower than market expectations, becoming the main driver of the recent rebound in the cryptocurrency market. As inflationary pressures ease relatively, the market has begun to reassess the Federal Reserve’s interest rate policy, causing the January hold expectation to waver and subsequently triggering a significant rally in the crypto market after a week of downturn. According to the latest data, BTC is currently fluctuating around $89,000 (24-hour increase +0.51%), while ETH has surpassed $3,010 (24-hour increase +1.04%), demonstrating an autonomous trend in digital assets.

Inflation data eases, Fed policy expectations change

The release of the lower-than-expected core CPI directly impacted market judgments on the direction of interest rates. As inflation signals weaken, the market anticipates that the Federal Reserve may adjust its policy stance, which is undoubtedly positive news for cryptocurrencies that value a loose liquidity environment. Meanwhile, US stock indices need to consolidate after their previous rapid gains, while the crypto market rebounds due to the favorable core CPI data, showing different momentum patterns. This divergence reflects the higher sensitivity of the crypto market to macroeconomic data.

Multiple factors converge, risks and opportunities coexist

Geopolitical risks are also influencing market sentiment. Recently, tensions in Iran have escalated, and the Trump administration announced support for Iranian opposition protesters. Market expectations of conflict escalation have increased, prompting investors to readjust their risk asset allocations. The crypto market tends to react more swiftly to such geopolitical risks, often warning ahead of traditional financial markets. Tonight, the US will release PPI data, and several Federal Reserve officials will make statements, which may increase market volatility. If the geopolitical situation indeed escalates substantially, a short-term correction in the crypto market cannot be ruled out, but once the situation clarifies, opportunities for rebound will also emerge. Paying close attention to these key data and event developments may be the key to seizing market opportunities.

BTC-1.5%

ETH-2.51%

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