Why Bitcoin Price Didn’t Rise Despite Positive Inflation: Analysts Explained! - Coin Bulletin

While the US Treasury market experiences the highest volatility in the last four months, Bitcoin's (BTC) expected price recovery could also be negatively affected by this situation.

The recently announced US inflation data came in lower than market expectations, strengthening the possibility of the US Federal Reserve cutting interest rates(FED). Analysts interpreted this decrease in inflation as a positive signal for Bitcoin, suggesting that BTC price could rise above 90,000 dollars.

Matt Mena, who serves as a cryptocurrency research strategist at 21Shares, stated, "Despite the decrease in inflation and ongoing concerns about recession not worsening, it indicates that Bitcoin is on the verge of a new major upward movement. This movement could stubbornly push the BTC price above the $90,000 threshold."

However, this expected rapid recovery may be disrupted due to the high volatility in the US Treasury market. Merrill Lynch's MOVE index, which measures the 30-day volatility in US Treasury bonds, has increased by 38% in the last three weeks, reaching a level of 115. This figure is the highest level seen since November.

How Bonds Are Affecting Cryptocurrency ###

Increased volatility in US Treasury bonds adversely affects liquidity and leverage ratios in global financial markets. This situation reduces investors' risk appetite, leading to a cautious stance in general markets, including the cryptocurrency market.

BIT Mining's chief economist Dr. Youwei Yang stated, "Although today's low inflation data is theoretically positive, it is not sufficient on its own to alleviate weeks of market concerns." Yang also commented, "The real problem is Trump's aggressive tariffs. These tariffs not only pose a risk of making inflation permanent but also drag down the markets. This situation makes it difficult for the Fed to bring forward interest rate cuts."