Bitcoin is hovering around the$ 104, 000 mark today, but could slip back to$ 100, 000 in the face of negative U. S. inflation and jobs data, according to analysis from Japanese exchange BitBank.

” With Trump’s inauguration festivity behind, the crypto market is shifting focus to U. S. inflation data today and]the ] jobs report next week”, explains BitBank market analyst Yuya Hasegawa.

Hasegawa notes that while inflation eased a little in December, it has been” sticky” in recent months and that the incoming “economic data may not favor Bitcoin.”

Something similar does qualify to Ethereum, although the latter has outperformed Bitcoin immediately after the SEC’s acceptance of Bitwise’s BTC-ETH exchange-traded account.

This announcement also comes as existing Ethereum ETFs ‘ net inflows increase after a number of days of outflows, with funds adding ETH worth$ 67.8 million, according to CoinGlass data.

However, if inflation data is released today, it may imply that the Federal Reserve may continue to insist on not lowering interest rates. As of Friday morning, the Commerce Department’s Bureau of Economic Analysis reported that the personal consumption expenditures (PCE ) price index rose 0.3 % last month after an unrevised 0.1 % gain in November.

But, James Wo, the chairman of Digital Finance Group, suggested that if and when the inflationary pressure eases, it was quickly increase aspirations for upcoming price reductions.

He told ,” The projected rate cuts will boost money supply, which in turn increases spending power, frequently causing the bull market to rise.”

Even with less than pleasant prices information today, the moderate- and long-term picture for both Bitcoin and Ethereum remains good, with Hasegawa underlining Jerome Powell’s new U-turn on whether U. S. banks may work with crypto firms.

In a investing notice shared with , Chair Powell said,” We were given the impression that some degree of further liberalization is on our way.” Powell’s comments coincide with last week’s removal of the stringent SAB 121 accounting rule.

Did, a partner at Digital Finance Group, believes Powell’s notes were more than just symbolic and that they may spur significant progress in the U.S. and the broader cryptocurrency market.

He explains that it has a significant impact because it now gives banks more guidance on how to provide bitcoin, reducing the ambiguities and dark areas that many institutions have encountered in the past.

Another analysts point to more positive aspects for Bitcoin, with 10X Research reporting yesterday that the biggest cryptocurrency on the market’s top is now seeing a rise in the price of gold as a result of President Donald Trump’s tariff rhetoric.

” 393 metric tons of gold—valued at approximately$ 35 billion —have been moved into COMEX vaults in New York since the Trump election, pushing inventory levels up by 75 %, the highest since 2022″, the firm’s analysts write.

And with the rise in gold prices, this could give rise to the demand for an additional reserve asset, which is already strong in light of recent moves by various states to establish BTC reserves.

Daily Debrief Newsletter

Start every day with the top news stories right now, plus original features, a podcast, videos and more.

Share This Story, Choose Your Platform!