CPI lower than expected or boost Bitcoin, but the overall economic situation still dominates

For Bitcoin, tonight's U.S. January CPI report could have a significant impact on market direction. If CPI is lower than expected, especially the core data excluding food and energy, it could enhance hopes for Fed rate cuts. This scenario could weaken the dollar, make U.S. Treasury yields more attractive, and potentially boost demand for high-risk assets like Bitcoin. However, those hoping for a substantial rise in cryptocurrencies may need to lower their expectations. While a cooling CPI could bring a temporary boost, the overall economic situation remains the dominant factor. With inflation expected to continue as a focus, the Fed maintains a cautious stance, potentially limiting Bitcoin's price movement to a narrow range between $90,000 and $110,000, especially if the CPI report shows higher-than-expected data.