As CPI day dawns, bitcoin price aims from $19K to $25K

As Bitcoin bulls face a familiar source of data on Valentine's Day, it's all about macroeconomics.

As markets braced for macroeconomic data, bitcoin continued to decline below $22,000 into February 14.

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CPI and Bitcoin: "Expect volatility"

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BTC/USD failed to expand beyond $21,800 before the US Consumer Price Index (CPI) was released for January, according to Trade Algo.

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At 8:30 am Eastern Time, the CPI release is regarded as one of the biggest volatility catalysts in the markets.

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There were thus expectations of a busy trading day, with potential targets ranging from $19,000 to $25,000.

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In part of a tweet update, Venturefounder, a contributor to CryptoQuant, wrote, "Will probably see that $24-25k Bitcoin pump if the CPI number tomorrow shows more disinflation in the positive direction."

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A year-on-year increase of 6.2% was expected, up from 6.4% the month before, and a month-on-month increase of 0.5%.

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Michal van de Poppe, founder and CEO of trading firm Eight, told Trade Algo that there are "relatively high expectations given this trend.".

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Bulls must hold $20,500 as the key level to end the current Bitcoin retracement, according to Van de Poppe.

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Traders at QCP Capital cautioned crypto investors about factors other than data in their latest market update.

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As a result of the recent legal action against Blockchain company Paxos, which issues the Binance stablecoin, it has been warned that the U.S. regulatory policy for cryptocurrencies is just the tip of the iceberg.

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The market cap upside of crypto looks even more subdued today from this perspective since the regulatory hammer is still out against it (possibly until the 2024 elections).

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In spite of inflation notionally subsiding, QCP maintains that expectations are out of sync with reality when it comes to the Federal Reserve reducing interest rates.

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Currently, we are pricing a 5.2% terminal rate followed by a 30bp cut by December 23, a significant increase from the 4.9% terminal and 50bp cut just two weeks ago, according to the report.

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Until the third week of March, the Fed will not meet to discuss rate changes.