14h05 ▪
5 min read
▪
by
Luc Jose A.
After reaching a historic peak in December, Bitcoin is undergoing a brutal correction, losing nearly 10% of its value in just a few weeks. This drop cannot be solely explained by a simple market cycle, but by a tense economic context. Persistently high U.S. inflation reduces the Federal Reserve's (Fed) maneuvering room, delaying hopes for rate cuts. This situation increases the pressure on risky assets, including Bitcoin, which sees its appeal diminish against a rising dollar and increasing bond yields. The imminent announcement of the Consumer Price Index (CPI) on January 15 could further accentuate this trend. According to Steno Research, inflation exceeding expectations could trigger new liquidations, potentially pushing BTC below $85,000. However, the danger does not come solely from macroeconomic data. The Bitcoin derivatives market remains overheated, fueling an excess of leverage that increases volatility. Amid economic uncertainties and the fragility of speculative positions, crypto operates in a zone of instability where each economic announcement could provoke a significant movement.