Bitcoin’s (CRYPTO: BTC) latest bounce looked, on the surface, like a typical crypto reflex. As U.S. inflation data landed without much drama, prices of the cryptocurrency ticked higher. But the real takeaway from Tuesday’s move was how little of it had to do with crypto-specific narratives, and how much it resembled a straight macro trade, with bitcoin increasingly moving in lockstep with rates-sensitive assets via ETFs.
Inflation Data Aligns With Fed Outlook
After U.S. consumer price data showed headline inflation rising 0.3% in December and holding at 2.7% year-on-year, with core inflation easing to 2.6%, Bitcoin climbed more than 2.5% to around $93,493.57. The response echoed the behavior of growth stocks reacting to shifting expectations around when (or if) the Federal Reserve might begin easing later this year. January, most strategists agree, is still off the table.
Spot Bitcoin ETFs Drive Macro Correlation
That matters because Bitcoin is no longer trading on the …