As investors brace for critical inflation data, the market eyes U.S. CPI to determine the next move for risk assets. While the Hang Seng Index enjoys a bullish run on renewed U.S.-China trade dialogue, Bitcoin remains flat, reflecting hesitation in the crypto market.
This week reveals a tale of two markets: traditional equities are optimistic, while digital assets remain defensive.
Hang Seng Surges on Positive Diplomatic Signals
The Hang Seng Index in Hong Kong jumped more than 1.3% following a new round of trade discussions in London. U.S. Treasury Secretary Scott Bessent and China’s Vice Premier He Lifeng met to discuss cooperation on tariffs, technology transfers, and rare earth exports.
These developments were welcomed by regional investors, pushing the Hang Seng above 24,000 points for the first time in months.
While equity traders responded with enthusiasm, the market eyes U.S. CPI to evaluate how broader economic policies could impact global liquidity and crypto asset flows.
Bitcoin Stagnant as Traders Await Inflation Clarity
Bitcoin continues to hover between $105,000 and $106,000, showing little interest in recent macro developments. Technical indicators point to low volatility and neutral momentum. Volume remains subdued as traders adopt a “wait-and-see” approach.
The market eyes U.S. CPI because it could define the Fed’s policy tone – hawkish or dovish – which in turn affects Bitcoin’s appeal as a hedge or risk asset.
Institutions Buy the Dip, Retail Still Cautious
Institutional players like MicroStrategy and MetaPlanet have added more BTC during this quiet phase. However, retail engagement has slowed, with many traders reluctant to enter new positions ahead of the CPI release.
Despite the low activity, long-term investors view this as an accumulation zone. Still, until inflation data is confirmed, the market eyes U.S. CPI for confirmation of either a breakout or a deeper correction.
Why CPI Matters for Crypto Investors
The Consumer Price Index, due Wednesday, is expected to show whether inflation is easing or resurging. A higher-than-expected reading might reignite fears of rate hikes, pressuring crypto markets. Conversely, lower inflation could support a risk-on rebound across both stocks and digital assets.
In either case, the market eyes U.S. CPI for the clarity it could provide after weeks of uncertain trading patterns.
Conclusion: CPI Takes Center Stage in Market Decision-Making
This week, inflation is the single most important macro signal. While traditional markets celebrate improved U.S.-China relations, crypto traders are holding back. As the market eyes U.S. CPI, all signs point to a pivotal moment that could shake Bitcoin out of its current sideways trend.
