Cryptonews Politics BITCOIN, BTC, CRYPTOCURRENCY, MARKET ANALYSIS, MARKET TRENDS, TD SECURITIES, TRUMP Clara Montgomery June 12, 2025 0 Comments

What to Expect From BTC Price as Open Interest Skyrockets to $75B Ahead of US CPI

Bitcoin’s open interest has reached $75 billion ahead of the US CPI data release, signaling potential market volatility. Price predictions suggest a drop to $105,600 under adverse CPI outcomes, while a softer CPI could send prices above $110,000. The impact of Trump’s tariffs may add inflationary pressures, complicating the outlook for Bitcoin.

Bitcoin’s price is on the edge as it trades just below $110,000, with open interest rocketing to an astonishing $75 billion. This surge, happening right before today’s US Consumer Price Index (CPI) data release at 8:30 a.m. EST, indicates an uptick in trader activity and possible market volatility. The possibility of significant price movements looms for Bitcoin investors as they anticipate how inflation data may affect the market.

Over the past month, Bitcoin’s price has been quite a ride, plummeting 10.41% to $100,305 after hitting an all-time high of $112,000 on May 21, 2025. However, a remarkable recovery saw it rebound 11% to touch a local peak of $110,653 by June 9. A dragonfly doji pattern formed on June 10 suggests a potential price correction could be coming, with many traders betting on significant market shifts as open interest continues to climb.

Today’s CPI report is expected to provide insights into the impact of President Trump’s tariffs on US inflation trends. Analysts from TD Securities project a modest 0.23% increase month-over-month in the core CPI, with the headline inflation rate easing to 2.4% year-over-year largely due to declining gas prices. If inflation data strays from expectations, it could significantly sway investor sentiment and Bitcoin’s price trajectory.

If the CPI reports a hotter-than-expected figure, it might indicate persistent inflation risks, pushing the Federal Reserve towards a more hawkish stance that could curb risks across the board. In such a scenario, Bitcoin’s price may test key support levels, potentially dropping to $105,600, which is supported by both quarterly and monthly VWAP levels. Conversely, a lower-than-anticipated CPI reading could alleviate inflation concerns, driving Bitcoin’s price above $110,653 and potentially resuming its climb towards the previous high of $112,000.

Should the CPI meet the projected 0.23% forecast, market reactions may be muted, possibly maintaining Bitcoin within a tight trading range between the support at $105,600 and resistance at $110,653. Over the longer term, the ongoing effects of Trump’s tariffs may escalate inflation risks, adding another layer of complexity to Bitcoin’s price dynamics.

Analyzing Bitcoin’s price action, a look at daily and hourly charts shows a bearish trend amid other factors. The dragonfly doji on June 10 hints at a possible pullback towards key support levels at $105,600 and $104,700. A drop below these could open the door for more significant losses.

The 4-hour TPO chart indicates that resistance remains at $110,653. If that level holds but a correction occurs, traders should watch for support within the $106,400 to $106,100 range. Such corrections can often lead to rebounds, especially if unfilled buy orders come into play.

Bitcoin’s open interest surge to $75 billion, combined with today’s CPI release, suggests upcoming volatility. If inflation readings exceed expectations, BTC might drastically fall toward the $105,600 support. Conversely, a softer report could see prices soar past $110,653, challenging the all-time highs. Meanwhile, if the CPI aligns with the forecasts, Bitcoin may consolidate without drastic movements in either direction.

Traders should also consider the implications of Trump’s tariffs, which could contribute to rising inflation and further complicate Bitcoin’s market position. Should corrections occur, veteran trader Peter Brandt has warned of a potential steep 75% drop in Bitcoin, reminiscent of past market patterns.

In summary, Bitcoin’s price remains precariously poised as it interacts with key market levels while awaiting critical inflation data. At $110,000 and with $75 billion in open interest, traders ought to prepare for both the challenges and opportunities that may arise in the near future, given the shifting economic landscape.

Bitcoin’s price action remains crucial as it navigates the upcoming challenges posed by inflation data. With a soaring open interest of $75 billion, the market is brimming with potential volatility. The expected CPI report could dictate whether Bitcoin remains afloat or heads towards significant corrections, with key support at $105,600 and resistance at $110,653. Ultimately, traders should brace themselves for whatever comes next as inflation and geopolitical factors continue to weave into Bitcoin’s narrative.

Original Source: coingape.com