Bitcoin Quiet Over the Weekend…Volatility Expected This Week

📉 Over the weekend (Jan 11–12), Bitcoin prices remained steady despite uncertainty surrounding last Friday's jobs report and rising inflation expectations. The market was unsettled, but Bitcoin held its ground.

📊 The U.S. labor market's strength, often seen as good news, has taken on a negative tone in the "good news is bad news" narrative. Bank of America noted in its latest investor note, "The Fed's rate cut cycle appears to have ended, and a rate hike remains on the table." Similarly, JP Morgan highlighted that "for the Fed to consider a rate cut by March, upcoming jobs data would need to deteriorate significantly."

⚠️ Adding to the uncertainty, 1-year inflation expectations surged from 2.8% to 3.3%—the highest since May 2022—raising doubts about the Fed's rate path.

💡 Despite these challenges, Bitcoin managed to stay stable through the weekend. However, this week brings significant economic data that could drive volatility, including the highly anticipated Consumer Price Index (CPI) and retail sales figures.

📈 If CPI comes in below expectations, it could ease rate concerns and act as a tailwind for Bitcoin. Conversely, a higher-than-expected CPI may drive Treasury yields up, halt rate cut prospects, and pose downside risks to Bitcoin. Investors should brace for a potentially volatile week ahead.

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