Bitcoin Holds Steady Near $110K Amid Softer US Inflation Data

Bitcoin's price reacted to the recent U.S. Consumer Price Index (CPI) data with initial optimism, briefly rising to around $112,000, supported by inflation figures that came in slightly below expectations and indicated cooling core inflation. This CPI print has been interpreted as reducing uncertainty around Federal Reserve policy, with markets pricing in expectations for continued interest rate cuts through 2026, which generally benefits risk assets like Bitcoin. Despite the initial rally, selling pressure and liquidation of leveraged positions pushed Bitcoin down toward $110,000 shortly after the Wall Street opening, highlighting cautious trader sentiment and liquidity challenges at key price levels. The data suggested that inflation momentum is cooling beneath the headline figures, mainly due to gasoline prices, and Bitcoin's steady behavior signals a potential shift toward acting as a macro hedge similar to gold rather than a high-volatility risk asset. Analysts note that while the CPI relief has cleared a key policy overhang, downside risks remain due to structural market factors and concentrated liquidation clusters, making the market vulnerable to rapid intraday moves. Overall, Bitcoin's reaction reflects a defensive positioning by traders, with the broader crypto market showing mild gains yet tempered by cautious profit-taking and market uncertainty.