Bitcoin prices steadied near $92,300 following the release of U.S. Consumer Price Index data, despite earlier claims of a steep drop due to speculative US-EU tariff conflicts.
The Federal Reserve's ongoing policy, economic indicators, and political tensions appear to influence Bitcoin's movements more significantly than any hypothetical tariff conflicts.
Bitcoin price steadies near $92,300 following CPI alignment and Fed news.
The recent economic reports show that Bitcoin price briefly exceeded $92,700 following the December CPI data release, which matched forecasts of 2.7% year-over-year. It then stabilized near $92,300-$92,400 amid ongoing Fed policy concerns.
Bitcoin Price Peaks Above $92,700 Post-CPI Release
Federal Reserve Chair Jerome Powell recently revealed DOJ threats concerning his 2025 testimony about setting rates based on economic conditions. This news triggered a safe-haven rise in Bitcoin to $92,000, reflecting the market's response to regulatory uncertainties.
Bitcoin Trades $48B Volume Amid CPI and Fed News
The Bitcoin market saw a trading volume spike to around $48 billion as investors reacted to the CPI announcement. Despite earlier fluctuations, it held near its stabilization range without any significant external shocks like rumored tariff war fears. "The cooling core data, paired with the jobs data, seem to be inline with the fed’s dual mandate and increase chances of further cuts this year even amidst the political noise surrounding the DOJ’s investigation into Chair Powell." - Matt Mena, Crypto Research Strategist, 21shares.
Experts highlight the potential for regulatory shifts in 2026, which may influence Bitcoin's price dynamics.
Bitcoin Mirrors Late 2025 Consolidation Trends
Current market behavior mirrors late 2025's consolidation, where Bitcoin ranged between $88,000-$94,000. Historically, similar consolidations have occurred after significant all-time highs, following market adjustments and stabilization phases.
According to Youwei Yang, a strong year for Bitcoin is anticipated, supported by potential rate cuts. However, heightened volatility remains likely amid geopolitical uncertainties.