Bitcoin climbed to an eight-day high ahead of Friday’s Wall Street open, as investors waited for key U.S. inflation data that could influence market direction.
Key points:
- Bitcoin continued to show resilience amid macroeconomic uncertainty, pushing back above $72,000 despite ongoing geopolitical tensions and volatility in traditional markets.
- Upcoming U.S. inflation data has raised expectations for potential volatility across risk assets, as investors watch for signals that could influence monetary policy and market sentiment.
- Since the conflict involving Iran began, Bitcoin’s performance has outpaced several major macro assets, highlighting its relative strength during a period of heightened geopolitical stress. (marketwatch.com)
Donald Trump called for the Federal Reserve to cut interest rates ahead of the upcoming Personal Consumption Expenditures (PCE) inflation report.
Meanwhile, market data from TradingView showed Bitcoin (BTC/USD) climbing above $72,000 on Bitstamp, marking the first time the pair has reached that level since March 5.
Bitcoin managed to avoid a major sell-off despite global uncertainty surrounding tensions in the Middle East and concerns about potential disruptions to oil supplies.
Meanwhile, recent macroeconomic data from the United States largely came in line with expectations, helping reduce the risk of excessive market volatility.
Markets were also awaiting the release of the Personal Consumption Expenditures (PCE) Index for January — a key inflation indicator widely regarded as the preferred measure of the Federal Reserve.
The previous PCE report exceeded forecasts and reached its highest level since late 2023, raising concerns about persistent inflationary pressure.
Despite the oil crisis raising concerns about renewed inflationary pressures, Donald Trump again called on the Federal Reserve to ease monetary policy.
In a post on Truth Social, Trump urged Jerome Powell to cut interest rates immediately.
“Where is the Federal Reserve Chairman, Jerome ‘Too Late’ Powell, today? He should be dropping interest rates immediately, not waiting for the next meeting,” Trump wrote.
“Conviction is building” for a Bitcoin breakout
Among market participants, attention has turned to Bitcoin’s relative strength despite the broader macro uncertainty.
Onchain analytics firm Glassnode noted in the latest edition of its newsletter, The Week Onchain, that Bitcoin has remained unexpectedly resilient following the recent geopolitical turmoil.
Glassnode also pointed to activity in the options market, suggesting traders are showing less concern about near-term downside risk.
In addition, the firm observed that an accumulation cluster is forming between $62,000 and $72,000. However, it said the strength of the accumulation remains moderate compared with earlier phases that preceded strong market expansions.
In a post on X, Glassnode added that the analysis was based on the cost basis of investors holding BTC for six months or less, often considered short-term holders in the market.
“Conviction is building, but the foundation for a mid-term breakout remains thin so far.”
Others noted that BTC/USD had outperformed other macro assets since the start of the events in Iran.
“Passing the geopolitical stress test,” Joe Consorti, head of growth at Bitcoin equity company Horizon, commented.
