Bitfinex alpha | Bitcoin was stomped in the middle of the wave of inflation

February 19th Bitfinex alpha | Bitcoin was stomped in the middle of the wave of inflation

Bitcoin has passed the $91,000 to $102,000 range for 81 consecutive periods of silent silence within a narrow transaction. The level of fluctuation at a historic low level causes investors to lose orientation between geopolitical tensions and the context of macroeconomic instability. Over the past week, Bitcoin’s volatile amplitude has been only 4.3%, with a slightly increasing 0.82%, a sign that the market lacked both in terms of power trading.

Meanwhile, the Altcoin Brothers are important, losing 46.4% of their value over the past month in a coin meme that Pepe plunged into without putting the brakes. In contrast, a few big men like OM, LTC and hype will have the opposite growth, making them unusual bright spots in the dark Altcoin market.

Daily Charts for BTC/USD. (Source: Bitfinex)

The Impact of Flows Betcoin Floors (IFP) – a useful indicator of market psychology – has changed to its first reduction state since June 2024, indicating the possibility of discounts. IFPs record fluctuations in BTC transaction flow from differential wallet to wall, reducing the taste of risk, which can often lead to market adjustments. Meanwhile, the losses have been rising sharply in recent low-level checks, reflecting previous surrender events during the ongoing price rise cycle.

There are indications that the market is heavy in the short term, but the structure is still sustainable. Typically, the 81-day consolidation period ends within 90 days, with the ability to break through (increase or decrease direction) approaching.

Meanwhile, the US economic situation faces new challenges when inflation surged in January 2025, marking the biggest rise in consumer prices in nearly 18 months. The Consumer Price Index (CPI) rose by 0.5% that month, pushing annual inflation to 3% – exceeding market expectations. This unexpected increase in inflation occurred at the Federal Reserve (Fed) in order to maintain strict financial policies to control price stability. The labour market remains strong, fostering increasingly complex efforts to drive consumer demand and control inflation.

Consumer Price Index (Source: Macromicro)

Bad news about inflation is not over yet. The January Production Price Index (PPI) rose 0.4%, continuing to increase its momentum from 0.5% in December. Accelerated wholesale prices indicate sustained supply chain inflationary pressures, making it difficult for businesses to engulf high costs without pushing them to consumers. The market expects to have more interest rates, but more stubborn inflation will likely keep the US Federal Reserve at a higher level, affecting spending and business investments.

Retail sales in the US fell 0.9% in January, the biggest decline in nearly two years. However, this decline is believed to be primarily due to disruptions due to bad weather, long-term shortages and bushfires. It is important to determine in the coming months whether this decline is a seasonal adjustment or a sign of a broader economic headwind.

Meanwhile, Strategy (formerly MicroStrategy) continued to collect Bitcoin products, buying 7,633 BTC last week. This increases the total number of Bitcoins the company holds at 478,740 BTC, with an average purchase price of USD 62,473. Michael Saylor’s business remains in line with his long-term “purchase and hold” strategy, reaffirming his commitment to not selling the amount of Bitcoin held by the company. The latest acquisition, revealed on February 10th, continues to strengthen its strategic position as one of the largest Bitcoin holders, strengthening the long-term value of the product.

In parallel, organizations applying Bitcoin continue to accelerate. Mubadara investment company, National Investment Fund Aub Dhabi, invested significantly US$436.9 million in BlackRock spot ETFs in the fourth quarter of 2024. This investment coincides with BlackRock, which received a licensed license transaction in Abu Dhabi at the same time, and its role in the sector as a cryptocurrency-friendly legal territory.

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