The cryptocurrency market remained highly volatile in early February, impacted by U.S. presidential trade policies imposed on several countries. This issue raised concerns among cryptocurrency investors. However, according to several data points, institutional accumulation and demand continued to rise despite the downward price pressure. Read the full analysis by the Pintu Trader Team.
U.S. inflation saw its largest rise in eight months in December, driven by strong consumer spending on goods and services, indicating that the Fed is unlikely to rush into cutting interest rates.
Although the Commerce Department’s report on Friday showed a modest monthly increase in prices excluding the volatile food and energy sectors, the annual rise in core inflation has remained unchanged since October. Disinflation progress appeared to have stalled in the fourth quarter.
The U.S. Fed held interest rates steady on Wednesday, marking the first pause since beginning its policy easing cycle in September. The accompanying policy statement notably omitted any mention of inflation making progress toward the Fed’s 2% target. The inflation outlook remains uncertain, influenced by the economic impact of President Trump’s fiscal, trade, and immigration policies.
The Fed anticipates a slower pace of monetary easing moving forward, as the economy remains strong and inflation is only gradually returning to target amid significant uncertainty. According to the Commerce Department’s Bureau of Economic Analysis, the Personal Consumption Expenditures (PCE) Price Index rose 0.3% in December, the largest increase since last April, following an unrevised 0.1% gain in November. This increase aligned with economists’ expectations. Goods prices climbed 0.2%, marking their first gain in five months, driven by higher costs for motor vehicles, parts, gasoline, and other energy products, which surged 4.2%. However, prices for furnishings, durable household goods, recreational goods, and vehicles declined. Service costs increased 0.3%, reflecting higher prices in transportation, recreation, housing, and utilities.
On an annual basis, PCE inflation rose 2.6% in December, the highest in seven months, following a 2.4% increase in November. The data was part of the preliminary Q4 Gross Domestic Product (GDP) report released on Thursday. The Fed closely monitors PCE price measures to guide monetary policy. Since September, it has reduced its benchmark overnight interest rate by 100 basis points, bringing it to a range of 4.25%-4.50%.
The central bank now projects only two rate cuts this year, down from the four initially forecasted in September. This cautious stance stems from concerns about the new administration’s proposed tax cuts, tariffs on imports, and immigration policies, which economists warn could drive inflation higher. No rate cuts are expected before June.
Excluding food and energy, core PCE inflation increased 0.2% in December, following an unrevised 0.1% rise in November. On an annual basis, core inflation remained at 2.8% for the third consecutive month. Some economists pointed to this slight monthly increase and a separate Labor Department report showing a marginal rise in labor costs as signs that disinflation remains intact. Core inflation rose at an annualized rate of 2.2% in the last three months of 2024.
BTC’s price has stabilized below $100,000, following a pullback from its recent all-time high of $109,000 reached in January 2025. Currently trading at $98,000, the leading cryptocurrency is showing signs of accumulation, as exchange reserves continue to decline.
Data highlights a persistent downtrend in Bitcoin exchange reserves, indicating that investors are moving their holdings off trading platforms. This behavior is often associated with long-term holding strategies, reducing the available supply for trading.
The Trump administration has signaled crypto-friendly policies, including potential regulatory adjustments and the formation of a dedicated cryptocurrency task force. These factors have contributed to positive market sentiment, despite the current price consolidation.
The Coinbase Premium Index, which tracks Bitcoin’s price difference between Coinbase and other exchanges, has recently broken above the ‘0’ resistance level. This metric is closely monitored by traders, as it often signals institutional buying pressure, given Coinbase’s popularity among professional investors.
Market analysts emphasize that the declining exchange reserves could lead to a supply shock, where reduced availability of Bitcoin on exchanges amplifies price volatility during periods of increased demand.
Since the November 2024 elections, Bitcoin has consistently found support around $90,000, marking a 30% increase during this period. This level has acted as a key support zone amid recent market fluctuations.
Share
Registered and licensed by BAPPEBTI and Kominfo
© 2025 PT Pintu Kemana Saja. All Rights Reserved.
Crypto trading is a high-risk activity. Pintu does not provide investment recommendations or products. Users are required to research crypto assets before making any decisions. All crypto trading decisions are made independently by the user.
See Assets in This Article
CRV Price (24 Hours)
Market Capitalization
-
Global Volume (24 Hours)
-
Circulating Supply
-