U.S. inflation data for January 2026 slowed more than expected, with the Consumer Price Index rising 2.4% year-over-year — below economist forecasts. This moderated inflation print has been interpreted as a condition that may keep the Federal Reserve on track for future rate cuts.
Market reactions have been nuanced: equities showed modest gains, Treasury yields eased, and Bitcoin experienced upward momentum as risk appetite subtly improved.
When CPI cools without triggering market panic, it reflects a delicate balance between macro tightening and easing expectations. For crypto, this highlights the sensitivity of digital assets to macro conditions and liquidity flows rather than isolated price action.
Is this a prelude to a broader liquidity return — or simply a temporary reprieve ahead of more macro data?
#CPIWatch #Macro #Inflation #Fed #CryptoMarket
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