Despite a cooling in inflation rate and a surprising boost from talks on tariff relief, both Bitcoin as well as the overall market reversed gains on Thursday, the move caused analysts to scratch the inside of their minds and investors in a tizzy state. With prices fluctuating the market’s attention has turned to one question: Will Bitcoin whales join in to help stabilize the market?
CPI Comes in Cooler Than Expected
The march Consumer Price Index (CPI) showed a slight decrease in inflation which was in line with expectations and increasing the likelihood of a Federal Reserve rate cut later this year. The Core CPI is the only one that does not include energy and foodhas also shown a weakening trend, usually viewed as positive for risk assets.
Markets initially cheered for the results. Bitcoin reached $71,000, and the S&P 500 opened up higher. However, at midday, gains had been lost all over the entire market.
Tariff Relief? Not Enough to Sustain Rally
Another positive thing is that reports have emerged about possible US tax relief initiatives to reduce tensions with important trading partners, especially China. The announcement triggered a brief increase as well as Bitcoin also benefited in conjunction with the risk-on mood.
The relief, however, was only temporary. Market participants aren’t convinced that the mere adjustment of tariffs can be enough to spur real economic growth, or even alleviate other concerns, like a slowing of earnings or geopolitical instability.
Bitcoin’s Slide: Whales to the Rescue?
The price of Bitcoin retreated sharply less than $69,000 after briefly testing new highs for the month. The move could be an example that is “sell the news,” which is when traders profited from news of the CPI print and macro-related updates.
Today, all eyes are focused on the huge BTC holders — also known as “whales” — who have traditionally been the first to buy when prices drop. Data from the on-chain shows a rise in whale wallets in recent hours, prompting speculation that high-net-worth or institutional investors are preparing to defend their key levels of support.
“If whales defend the $68K-$69K zone, we could see a bounce toward $72K,” Crypto analyst Lina Carter. “But if that support fails, the next leg down could test $65K.”
Stocks Mirror Bitcoin’s Volatility
The tech-focused Nasdaq along with the S&P 500 also gave up earlier gains, as investors appeared nervous ahead of earnings reports. The uncertainty surrounding global trade trends and Fed policy continue to weigh on the sentiment.
What’s Next?
With CPI being a distant memory markets are likely to focus on corporate earnings, and possibly other signal coming from the Federal Reserve. For Bitcoin the next move could depend on whether whales rise up or stay out.
In the meantime both equity and crypto markets are in a tense conflict between relief rallies as well as macro-economic uncertainties.