January US CPI data will be released today, potentially triggering a rally in Bitcoin and altcoins. BTC price is currently under $100,000.

Bitcoin and major altcoins such as Dogecoin, BNB, and Cardano are experiencing declines, contributing to a total crypto market cap decrease of 4.6% over the past 24 hours.

According to Coingecko, Bitcoin’s price is below $96,000, which is a nearly 3% drop this past week. Many traders are anticipating significant volatility after the release of today’s Consumer Price Index (CPI) report.

Economists expect the core CPI to have increased by 0.3% in January 2025, surpassing December’s increase of 0.2%. They predict an annual CPI rise to 2.9% over the past year.

Bank of America analysts project a 0.3% month-over-month climb in core CPI, with a potential headline inflation increase to 0.27% month-over-month, moving the annual inflation rate down from 2.9% to 2.8%.

Whether the January 2025 CPI data matches, exceeds, or falls short of expectations will profoundly affect the crypto market’s response.

Understanding how Bitcoin performs during the New York trading session will be crucial; if it breaks $100,000, altcoins like Solana and Cardano are likely to experience upward trends as well.

The uncertain environment surrounding the CPI report has resulted in a decline in cryptocurrency prices. Recent reports show that over $224 million in leveraged positions have been liquidated across multiple exchanges, particularly Binance and OKX.

At present, Bitcoin remains below $100,000, affecting overall trading volumes.