Bitcoin Rebounds as US CPI Eases—Will Rate Cut Expectations Shift the Trend?

▲ Bitcoin (BTC), U.S. Dollar (USD)/ChatGPT-generated image ©

Although Bitcoin has reclaimed the $70,000 level after February’s sharp decline, unease within the market has not been fully resolved.

According to cryptocurrency outlet Bitcoin Magazine on Feb. 15 (local time), Bitcoin (BTC) rebounded after plunging to the low $60,000 range earlier this month and was trading at around $70,215. It rose about 2% over the past 24 hours, with daily trading volume reaching approximately $43 billion. Its market capitalization once again exceeded $1.4 trillion, signaling a short-term technical recovery. The price is also nearing its seven-day high of $70,434.

The immediate catalyst for the rebound was the release of the U.S. January Consumer Price Index (CPI). The figure rose 2.4% year-over-year, below the market expectation of 2.5%, raising hopes that the Federal Reserve could move up the timing of interest rate cuts. This boosted risk appetite and drew buying interest across the cryptocurrency market. On prediction platform Kalshi, the probability of an April rate cut was reflected at 23%, while similar odds also increased on Polymarket.

Bitcoin’s recovery also spread to related stocks. Coinbase (COIN) surged 18% in a single day, while Strategy (MSTR) gained 10%. Despite reporting a net loss of $666.7 million in the fourth quarter of 2025, investors renewed bets on expanding exposure to digital assets. Strategy disclosed that it had purchased more than 1,100 BTC this week, reaffirming its long-term financial strategy, though it posted a quarterly loss due to unrealized losses on its holdings.

Bitcoin had been in decline for several months after surpassing $120,000 last October, and in early February it broke below the psychological support level of $70,000, extending its losses. Market research firm K33 suggested the recent sharp drop toward the $60,000 level showed signs of capitulation in trading volume, funding rates, options positioning, and spot ETF flows, raising the possibility of a “short-term bottom.”

However, fear sentiment remains intact. The Crypto Fear & Greed Index is still in the “extreme fear” zone, similar to levels seen during the 2022 bear market and major industry collapses. Whether the recovery above $70,000 marks the beginning of a structural rebound or proves to be another technical bounce will likely depend on additional buying momentum and changes in the macroeconomic environment.

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