In the analysis of March 27, 2025, entitled “Where does Bitcoin go after that?
Where is Bitcoin heading after that?
Trueflation research It refers to the background posed by the effects of Covid-19, when central banks worldwide reduced interest rates to nearly zero and turning liquidity into the economy. This period of easy funds overlapped with Bitcoin’s operation to the highest levels ever in 2021. By 2022 and 2023, continuous inflation was made, prompting the American Federal Reserve to reflect the path. High interest rates and tightening have become the basic tools for fighting prices, as the federal reserve aims to reduce consumer rates to 2 %.
According to the Trueflation report, the actual time inflation readings reached 2 % in June 2023. The official consumer price index (CPI), published by the Labor Statistics Office, reflects this pattern about a month and a half, after it was turned out straight. Instead, fluctuation between the upper and lower borders, indicating a periodic pattern of inflation that would settle or reflect the path. Trueflation now believes that all these periodic “reflection points” are closely related to the subsequent rise in Bitcoin.
The report indicates four distinct periods from September 2023 to September 2024 when the Trueflation index went down and then settled or bounced. In each of these cases, the price of bitcoin increased shortly after. Trueflation indicates that the fifth event may now be revealed: the inflation index decreased sharply in early 2025, reaching about 1.30 % – an unprecedented level in several months – before the bounce to 1.80 %. This situation reminds us of the previous inflation ponds, based on Trueflation data, which has achieved a new wave of bitcoin.
“When the direction of inflation stops or reflects it, Bitcoin tends to gather shortly after a short period. This style has already been repeated several times – and if the history of rhymes, it may reveal again soon.”
Trueflation explains the reason behind this, revolves around the innovative bitcoin nature and its sensitivity to changes in liquidity conditions. Strong inflation usually raises speculation that the federal reserve may be raised and may soon turn to Dovish. While acute and consecutive inflation can lead to fears of stagnation, the slowdown or stopping in this direction of inflation often reassures markets that do not slip the economy to economic shrinkage.
This “soft landing” scenario encourages feelings of risks. Traders and investors who believe that inflation has sufficiently underwent a delay in additional tightening – or to accelerate the price cuts – direct their optimism to assets such as bitcoin.
The report acknowledges that there is no one part of the data, including Trueflation, which carries the absolute effect on a complex origin and is widely circulated like Bitcoin. However, it confirms that real -time inflation expectations are hesitant throughout global markets, which affects stocks, goods and foreign currency trading, as well as encryption. By expecting transformations in these expectations, some investors may find themselves advanced on the curve when the official CPI reports and the central bank’s statements recently confirm or contradict the advanced direction.
“Bitcoin inflation does not affect a vacuum. There is no single data source at all. But inflation expectations are ripped through a wide range of markets – from stocks to commodities – especially in bond yields and Forex markets.”
At the time of the press, BTC was traded at $ 84,461.
Distinctive image created with Dall.e, Chart from TradingView.com
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