Trading Desk Insights
Bitcoin traded near $66K on Friday as markets absorbed the latest U.S. inflation data, with price action staying relatively calm into and after the release. Traders remained cautious through the morning session, positioning lightly ahead of the print and avoiding aggressive directional bets while macro continues to dictate short-term flows.
The CPI report came in slightly softer than expected. Core CPI month over month printed 0.3%, matching forecasts, while headline CPI month over month came in at 0.2% versus 0.3% expected. Year over year CPI landed at 2.4%, below the 2.5% forecast and down from 2.7% prior, signaling continued disinflation but not enough to materially shift central bank expectations.
The reaction across markets was measured. Softer inflation helped stabilize sentiment, but with rates still expected to stay higher for longer, risk appetite did not expand meaningfully. Instead of a sharp move higher, most assets saw a mild relief response followed by consolidation as participants reassessed the policy path.
In crypto, activity remained balanced with steady two-way flow rather than strong directional positioning. BTC continued to hover in the mid-$60K range, ETH stayed just under the $2K mark, and broader tokens moved modestly without any clear sector-wide leadership. Liquidity conditions remain stable, but conviction for a breakout remains limited in the absence of a stronger macro catalyst.
For now, the market continues to trade off incoming economic data. As long as inflation trends gradually lower without collapsing, crypto is likely to remain supported on dips while struggling to push into a sustained rally. The next directional move will depend on whether future data meaningfully shifts expectations around rates and liquidity.
Crypto Charts
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