Bitcoin Gold prices remained steady at $52,000 as Wall Street commenced trading on February 16, buoyed by positive U.S. macro data. However, BTC price action appeared to stagnate during the final session of the week, as illustrated by data from TradingView. The release of January's Producer Price Index (PPI) data compounded concerns about inflation in the United States, following closely on the heels of the Consumer Price Index (CPI) report from two days prior.
The latest figures indicated a 0.9% year-on-year increase in PPI, slightly lower than the previous month but still surpassing market expectations of 0.3%. This heightened inflationary pressure, combined with the recent "hot" CPI data, has left the market apprehensive about the Federal Reserve's stance on fiscal policy adjustments for the remainder of the year. As a result, the likelihood of a rate cut at the Fed's March meeting has diminished, dropping to 8.5% from 17.5% at the beginning of the week, according to the CME Group's FedWatch tool.
Commenting on the implications of the PPI data, trading resource Kobeissi Letter suggested that the prospect of a rate cut in March may now be off the table entirely, while even a rate cut in May is now questionable. Despite Bitcoin briefly reaching $52,884 on Bitstamp the previous day, pressure from sellers hindered further upward momentum. Noted trader Skew highlighted the significance of the 21-period exponential moving average (EMA), emphasizing its role in influencing market dynamics.
February 15 witnessed substantial net inflows of nearly $500 million into U.S. spot Bitcoin exchange-traded funds (ETFs), marking a notable uptick in interest just over a month after their initial launch. However, some market observers remain cautious, with concerns raised about the potential impact of a slowdown in ETF interest on Bitcoin's price. VentureFounder, a contributor to the on-chain analytics platform CryptoQuant, warned that a normalization or flattening of Bitcoin ETF net inflows could leave the cryptocurrency vulnerable to a significant correction, with potential price floors speculated to fall as low as $34,000.
