Thursday's CPI Report May Halt Federal Reserve Rate Cuts, Leading to Bitcoin Fluctuations

Price Recovery: Bitcoin rebounded to $87,918 after defending the $85,000 support level, with modest gains from a low of $85,427, coinciding with stronger-than-expected employment data.

Market Reactions: The price movement led to approximately $38 million in liquidations of short positions, surprising traders as the unemployment rate rose to 4.6%, the highest since September 2021.

Upcoming Economic Indicators: Investors are cautious ahead of the U.S. Consumer Price Index report, with expectations of a year-over-year inflation rate between 3.0% and 3.1%, which could influence Federal Reserve rate decisions.

Long-term Outlook: Despite short-term volatility due to economic data, experts maintain a positive long-term narrative for Bitcoin, emphasizing that the recent job report may pose challenges in the near term.