Recent Consumer Price Index (CPI) reports have brought about a recurring trend of price drops for Bitcoin, with the cryptocurrency typically experiencing an average decline of around -9%. This pattern has been highlighted by data from analyst Ali Martinez, showing the post-CPI reaction in recent months. 📈
Data reveals that every CPI release in the past few months has seen Bitcoin plummet significantly, causing uncertainty and volatility in the market. 📉
Analyst Ted has observed a clear connection between this pattern and past CPI releases, with Bitcoin’s price action mirroring previous movements. If this trend continues, another significant selloff might be anticipated after the next CPI release.
However, not all observers are anticipating such bearish outcomes. On-chain metrics like the MVRV ratio are indicating a potential shift in market sentiment. This metric has been observed to reach similar levels before significant market shifts, suggesting an impending change.
For example, a spike in 2024 saw Bitcoin’s price surge after a sharp decline, while a drop in 2025 was followed by an upward trend.
While the current level of the MVRV ratio points towards a potential bullish wave, caution is advised. The market remains volatile and prone to unexpected fluctuations due to factors like inflation data and investor sentiment. It’s important for investors to exercise vigilance and remain informed about any upcoming CPI reports.