{"id":45176,"date":"2025-02-17T11:47:27","date_gmt":"2025-02-17T11:47:27","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=45176"},"modified":"2025-02-17T11:47:27","modified_gmt":"2025-02-17T11:47:27","slug":"bitfinex-alpha-btc-consolidates-as-inflation-surges","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=45176","title":{"rendered":"Bitfinex Alpha | BTC Consolidates as Inflation Surges"},"content":{"rendered":"
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Bitcoin continues to trade within a narrow $91,000 to $102,000 range, now stretching into its 81st consecutive day<\/a> of consolidation. With volatility at historic lows, the market remains directionless as geopolitical tensions and macroeconomic uncertainty weigh on sentiment. Over the past week, Bitcoin\u2019s peak-to-trough movement<\/a> was just 4.3 percent, closing with a modest 0.82 percent gain, underscoring the lack of either strong buying or selling pressure.<\/p>\n

Altcoins have suffered significant losses<\/a>, with meme coins like PEPE<\/a> plunging 46.4 percent over the past month, while OM, LTC<\/a>, and HYPE remain the only large caps posting gains.\u00a0<\/p>\n

BTC\/USD Daily Chart. (Source: Bitfinex)<\/em><\/strong><\/p>\n

Bitcoin\u2019s Inter-Exchange Flow Pulse<\/a> (IFP)\u2014a useful indicator of market sentiment\u2014has turned bearish for the first time since June 2024, suggesting potential downside. The IFP records moves in BTC exchange flows from derivatives wallets to spot wallets suggesting reduced risk appetite<\/a>, and this can often lead to market corrections. Meanwhile, realised losses have spiked during recent re-tests of range lows, mirroring past capitulation events within the ongoing bull cycle.\u00a0<\/p>\n

Despite signs of near-term market heaviness, Bitcoin remains, however, structurally intact. Historically, 81-day consolidation phases resolve within 90 days, meaning a decisive breakout\u2014up or down\u2014could be imminent.\u00a0<\/p>\n

The US economic landscape is also facing a renewed challenge as inflation surged<\/a> in January 2025, marking the most significant rise in consumer prices in nearly 18 months. The Consumer Price Index<\/a> increased by 0.5 percent for the month, pushing the year-on-year inflation rate to 3 percent\u2014exceeding market expectations. The unexpected inflationary surge comes at a time when the Federal Reserve has maintained restrictive monetary policies to control price stability, making an imminent rate cut unlikely. The labour market remains strong<\/a>, with rising wages fueling consumer demand, further complicating efforts to control inflation.<\/p>\n

Consumer Price Index (Source: Macromicro)<\/em><\/strong><\/p>\n

Adding to inflation concerns, the Producer Price Index<\/a> climbed by 0.4 percent in January, following a 0.5 percent rise in December, marking the sharpest two-month increase in nearly a year. The acceleration in wholesale prices indicates persistent inflationary pressures<\/a> in the supply chain, making it more difficult for businesses to absorb rising costs without passing them on to consumers. Initially, markets priced in several interest rate reductions, but with inflation proving more stubborn than anticipated, the Federal Reserve may keep rates elevated for longer, impacting<\/a> borrowing costs and business investment.<\/p>\n

It is true that US retail sales sharply declined in January, falling by 0.9 percent, and marking the most significant drop<\/a> in nearly two years. But this downturn was primarily attributed to adverse weather conditions, ongoing vehicle shortages, and wildfire disruptions. The coming months will be critical in determining whether this decline is a seasonal adjustment or an indication of broader economic headwinds.\u00a0<\/p>\n

In the meantime, Strategy, formerly known as MicroStrategy, has expanded<\/a> its Bitcoin holdings once again, acquiring an additional 7,633 BTC last week. This brings its total holdings to 478,740 BTC, with an average purchase price of $62,473. Executive Chairman Michael Saylor remains steadfast in his long-term \u201cbuy and hold\u201d strategy, reaffirming his commitment to not selling the company\u2019s Bitcoin holdings. This latest acquisition, disclosed in a February 10 filing, further solidifies Strategy\u2019s position as one of the largest institutional holders of Bitcoin, reinforcing confidence in the asset\u2019s long-term value proposition.<\/p>\n

Meanwhile, institutional adoption of Bitcoin continues to gain momentum as Abu Dhabi\u2019s sovereign wealth fund, Mubadala Investment Company, made a significant investment<\/a> of $436.9 million in BlackRock\u2019s spot Bitcoin ETF during the fourth quarter of 2024. The investment coincided with BlackRock receiving a commercial license to operate in Abu Dhabi during the same period, further cementing the region\u2019s role as a crypto-friendly jurisdiction.<\/p>\n

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The post Bitfinex Alpha | BTC Consolidates as Inflation Surges<\/a> appeared first on Bitfinex blog<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

Review full report Subscribe to Bitfinex Alpha Subscribe to Bitfinex Alpha! Want to receive Alpha from Bitfinex every week? Subscribe Bitcoin continues to trade within a narrow $91,000 to $102,000 range, now stretching into its 81st consecutive day of consolidation. With volatility at historic lows, the market remains directionless as geopolitical tensions and macroeconomic uncertainty […]<\/p>\n","protected":false},"author":0,"featured_media":45177,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-45176","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-interesting"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/45176"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=45176"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/45176\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/45177"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=45176"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=45176"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=45176"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}