Bitcoin Rangebound Near $70K as CPI Data Fails to Spark Inflation Fears

The recent Consumer Price Index (CPI) data released by the U.S. Bureau of Labor Statistics came in line with analyst estimates, showing a moderate increase in inflation rates.

The report revealed that shelter costs rose 0.2%, food prices increased 0.4%, and energy climbed 0.6% in February. The index for all items excluding food and energy also rose 0.2%. Analysts at ETP issuer 21Shares noted that the implications for higher future inflation readings are already reflected in market pricing.

Stephen Coltman, head of macro at 21Shares, stated that the Federal Open Market Committee (FOMC) now faces a difficult decision regarding interest rates. He questioned whether the Fed will look past a temporary inflation shock or adopt a more cautious, hawkish posture given its recent experience with persistent price increases.

Matt Mena, crypto research strategist at 21Shares, predicted that Bitcoin is likely to stay rangebound between $68,000 and $74,000 in the near term. He stated that a breakout above $75,000 appears close, and historical data suggests that Bitcoin tends to recover by 15% or more following geopolitical market shocks.