Bitcoin's Gains Limited Despite CPI Decline; Trading Around 120 Million Won

# Bitcoin Remains Tepid Despite Lower-than-Expected U.S. CPI and Fed Rate Cut Hopes The recent U.S. Consumer Price Index (CPI) fell below expectations, heightening hopes of a Federal Reserve rate cut. However, Bitcoin (BTC) showed a tepid response to the news. Analysts suggest that this muted reaction reflects a combination of factors, including U.S. foreign trade policies, macroeconomic uncertainties, and existing sell pressure. As of 8:35 AM on the 13th, Bitcoin traded at 123.73 million KRW on Upbit, a South Korean digital asset exchange, marking an increase of 0.41% (498,000 KRW) from 9 AM the previous day. Globally, Bitcoin rose 1.11% to $83,510 over the same period, according to CoinMarketCap. Data from Coinglass indicated that Bitcoin saw liquidations worth approximately $105.46 million (153.2 billion KRW) in the past 24 hours, with long positions accounting for about 57% of that amount. The total liquidation volume for all digital assets was approximately $267.43 million (388 billion KRW). Last month's CPI, as reported by the U.S. Department of Labor, increased by 3.1% year-over-year, slightly below market expectations of 3.2%. This has fueled optimism about increased liquidity in financial markets. Marta Mena, a digital asset research strategist at 21Shares, noted, "Expectations for a Fed rate cut have surged, with the probability of a May rate cut rising to 31.4%, more than triple from last month. The chances of three rate cuts within the year have soared to 32.5%, more than fivefold." Despite these heightened expectations, Bitcoin did not react immediately. This can be attributed to recent U.S. economic policies and geopolitical risks, which have added to Bitcoin's volatility. The escalating trade conflict between the U.S. and the European Union (EU) has also contributed to overall market uncertainty. Marcin Kazmierczak, co-founder of RedStone, stated, "Macroeconomic uncertainty is increasing as the EU retaliates against U.S. steel and aluminum tariffs with counter-tariffs. Bitcoin prices may face short-term adjustments down to $75,000." Market analyst Anthony Pompliano also suggested that "President Donald Trump might be intentionally destabilizing the market to pressure the Federal Reserve." However, Ryan Lee, Chief Researcher at Bitget, emphasized that "Bitcoin prices are closely linked to macroeconomic conditions," but noted that "factors such as increased institutional adoption, regulatory changes, and expanded liquidity are also crucial determinants of price fluctuations." Meanwhile, the Alternative Fear & Greed Index, which measures investor sentiment in the digital asset market, jumped to 34 (fear) from 24 points the previous day. The Fear & Greed Index indicates that lower values suggest stronger selling pressure among investors, while higher values indicate a greater propensity to buy.