Bitcoin Price Reclaims $70k as US CPI Inflation Declines to 4-Year Low

Bitcoin price has returned to the $70,000 level after a softer-than-expected U.S. inflation reading eased market concerns and renewed risk appetite. At press time, the BTC price was trading at $69,725, a 1.24% surge from the 24 hour low.

The BTC price rebound has followed the release of January Consumer Price Index data, which rose 2.4% year-over-year. As we reported, this was slightly below the 2.5% forecast and marked its lowest level in more than four years. The figure moved the market toward the view that interest rate cuts could arrive sooner than earlier projections.

BTCUSD Chart (Source: CoinCodex)

The monthly CPI reading came in at 0.2%, compared with expectations of 0.3%. Core CPI rose 2.5% year-over-year, which matched predictions and reached its lowest level since 2021. The data supported the idea that inflation is trending back toward the Federal Reserve’s 2% target. Traders viewed the release as a sign that policy easing may begin within the coming months.

Rate-sensitive markets reacted quickly. Traders on Kalshi placed the odds of a 25 basis-point rate cut in April at 26%, up from 19% earlier in the week. On Polymarket, the probability moved from 13% to 20% following the CPI release. Lower interest rates tend to support prices for risk assets because returns on low-risk instruments decrease.

Crypto Market Sentiment Remains in “Extreme Fear”

Despite the move back to Bitcoin price recovery above $70,000, market sentiment remains weak. The Crypto Fear & Greed Index has stayed in the “extreme fear” range since the start of the month. The current level is similar to readings during the 2022 bear market and the collapse of FTX. The index shows that traders remain cautious even as prices recover.

Voices across the market shared views about Bitcoin’s long-term structure. Bitcoin advocate Robert Kiyosaki wrote, “Bitcoin, by design, is limited to 21 million… no more Bitcoin can be added after 21 million are mined.” He said this fixed supply supports a long-term bullish case. He added that gold supply can grow with higher prices, while Bitcoin cannot.

Source: X

Crypto analyst Manpreet Kailon has described a long-term trendline that the BTC price chart has formed after recovery as the “final boss” of Bitcoin because it has capped major cycle peaks since 2017. As per the analysts, the 200-week simple moving average remains a crucial support level. Consequently, a weekly close below that line may indicate a larger structural shift for the BTC price.

Traders Weigh BTC Price Breakout or Retest Scenarios

The Bitcoin price’s short-term market structure also drew attention from analysts. According to CoinCodex, the Bitcoin price broke above $69,000 and is again testing a pressure zone. With the BTC price reclaiming the $70,000–$72,000 region, Bitcoin would have moved above Michael Saylor’s average purchase price. 

Michael Saylor-led Strategy, as per Coinpaper’s recent report, now holds more than 713,502 BTC. This makes it the largest corporate holder of Bitcoin. However, if the BTC price fails to break higher, it may pull back to the $64,000–$66,000 range.

According to crypto analyst Trader Tardigrade, Bitcoin’s two-week chart still shows a repeated structure. According to him, a “Bear Flag followed by a recovery curve” appeared in the 2022–2023 cycle and the current 2025–2026 cycle. Consequently, with the BTC price recovering above $70k, the analysts note a rally above $80k could be near. Backing this forecast, the Bitcoin price is forming an “Adam and Eve” structure. According to analysts, a move above $72,000 could push the asset toward the $80,000 area.

Source: X

However, despite the BTC price recovery, the Royal Government of Bhutan has sold 385 BTC worth $29 million during the past two weeks. However, the country still holds 5,600 BTC, worth about $374 million.