Interest rate expectations shifted following the CPI release. Data from the FedWatch Tool placed the odds of a rate cut at the January 28 Federal Reserve meeting at 26.6%. The adjustment followed changes in inflation and bond market pricing.
Despite the bullish macro data, Bitcoin faced sharp liquidity-driven moves. Traders reported walls of liquidity above and below the BTC/USD price. The market failed to establish a sustained trend during these swings.
showed total crypto liquidations exceeded $630 million over the last 24 hours. Forced exits affected both long and short positions amid rapid price changes. Volatility remained elevated throughout the session.
Crypto trader and entrepreneur Ted Pillows compared current Bitcoin price action to early 2025, stating that Bitcoin appeared to mimic a Q1 2025 fractal based on futures data. This comparison raised one question for traders watching closely: Could another macro bottom still lie ahead?
The referenced chart pointed to a prior instance in early April. During that period, Bitcoin briefly dipped below $75,000 before recovering; the pattern comparison emerged as snap price moves continued during the current session.
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