Bitcoin price unaffected by CPI boost, as market predicts 95% odds of Fed rate pause.

Bitcoin (BTC) remained stable on June 12 when Wall Street opened, despite some macroeconomic data that failed to change the status quo.

Markets expect first Fed pause since 2021

Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD continued to hover around $26,000, avoiding any major volatility.

The largest cryptocurrency saw a brief spike towards $26,500 following the latest United States Consumer Price Index (CPI) print, which came in below expectations.

However, despite the supposed boost to risk assets, crypto markets remained cautious on the day, with comments from the Federal Reserve and further macro prints due in the coming days.

Equities: Full Bull. Crypto: Can’t even muster a small pop for us to get short. What a shame lol

— Crypto Chase (@Crypto_Chase) June 13, 2023

Bets on the Fed pausing its rate hike cycle on June 14 after the meeting of the Federal Open Market Committee (FOMC), meanwhile, climbed following the CPI event. At the time of writing, per CME Group’s FedWatch Tool, the odds stood at over 90%, having started the day at 75%.

“Disinflation continues!” financial commentator Tedtalksmacro reacted .

“Headline CPI prints at +4.0% YoY, which now takes the 3-month annualised rate to +2.21%. The Fed have long targeted 2.0%. PAUSE.”

Trading firm QCP Capital likewise believed that “consensus has it right” — that the Fed would not raise rates further — at least this time.

“Based on high frequency indicators, US inflation is falling rapidly, which will enable the FOMC to make this week’s meeting their first pause in more than a year,” it wrote in a market update on the day.

QCP acknowledged that subsequent FOMC meetings may yield different results, in order to “appease” more hawkish committee members.

“Furthermore we think the easing of financial conditions as a result of this massive melt-up equity rally will play at the back of their minds,” it added.

BTC price: Where’s the volatility?

Multiple commentators, meanwhile, noted that BTC/USD had closed the gap in CME Bitcoin futures from the weekend.

Related: SEC, CPI and a ‘strong rebound’ — 5 things to know in Bitcoin this week

#Bitcoin Last weekend’s CME Gap has been closed. pic.twitter.com/wcathiQPUU

— Daan Crypto Trades (@DaanCrypto) June 13, 2023

Analyzing what could come next, Michaël van de Poppe, founder and CEO of trading firm Eight, was torn, nonetheless flagging $25,000 as a potential downside entry point.

CME gap closed of #Bitcoin . Dump into FOMC as FOMC hikes 25bps and then bounce back up as Powell states that they’ll pause or unemployment claims come in higher than expected? All on the cards as a scenario. In that case, bidding around $25K makes sense or flip $26.5K

— Michaël van de Poppe (@CryptoMichNL) June 13, 2023

Data from the Binance order book uploaded to social media by monitoring resource Material Indicators, meanwhile, showed a lack of liquidity near spot price prior to the print, with clearly defined support and resistance.

Here’s how the #BTC order book on @binance is setup just ahead of the U.S. Economic Reports. FED watchers want to see inflation numbers continuing to cool. #TradFi #Crypto #FED #FireCharts pic.twitter.com/ShhAO42GxS

— Material Indicators (@MI_Algos) June 13, 2023

“Bulls are looking for a boost from the Economic Data coming today and tomorrow to reclaim the range,” part of a prior post commented about daily timeframes.

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