Bitcoin Tests Local Peaks Above $83,000 Ahead of Inflation Index Release

In the early hours of March 12, the price of the leading cryptocurrency surged to $83,600 before retreating to $82,000. Traders are anticipating the release of data on U.S. consumer price dynamics (15:30 MSK/14:30 Kyiv).

At the time of writing, digital gold is trading at $81,450, with daily growth rates reduced to 1.3%.

Ethereum has decreased by 1.7% to $1860. Overall, the top 10 cryptocurrencies by market capitalization show mixed dynamics.

The recovery was aided by an improved external backdrop, as U.S. President Donald Trump canceled 50% tariffs on steel and aluminum from Canada.

Market sentiment may also have been influenced by Senator Cynthia Lummis’s reintroduction of a bill to create a strategic Bitcoin reserve.

In the context of CPI data, the market’s focus is on the inflation trajectory and the response of the Fed, analysts at Presto Research noted in a comment for The Block.

Standard Chartered pointed out the pressure of the overall situation in the risk asset segment on the digital gold rate. Experts linked the potential end of the correction to a monetary policy shift or positive news such as the launch of a crypto reserve in the U.S. and other countries.

Analysts maintained their previous forecast of digital gold rising to $200,000 by the end of the year.

“Bitcoin trades in the group Magnificent Seven + BTC, with volatility-adjusted Tesla performing the worst, while Meta and Apple performed the best. The rest are similar to the first cryptocurrency,” the review states.

The next Fed meeting is scheduled for March 19. Rohit Jain, Managing Director of CoinDCX Ventures, suggested a wave of sales following the expected maintenance of the key rate at its current level. The expert noted a high likelihood of Bitcoin falling to support near $70,000.

According to CME FedWatch, the probability of monetary policy easing at the May meeting is estimated at 42.1%.

Ruslan Lienha, head of markets at YouHodler, expressed concern about the current correction. The specialist noted that it could develop into a medium-term bearish trend.

Former BitMEX CEO Arthur Hayes did not rule out a decline in Bitcoin to $70,000 before recovery.

CryptoQuant CEO Ki Young Ju suggested a prolonged consolidation of the asset within a broad range (e.g., $75,000-100,000), as observed in early 2024 before a return to growth.