Bitcoin Stalls Despite Lower US CPI, Faces Second Day of Sell-Off

  • Bitcoin’s price declined despite lower-than-expected U.S. inflation, continuing a recent sell-off.
  • Traders expect Bitcoin to remain range-bound, with potential to dip below $100,000 before the next move.
  • Bitcoin continues to outperform Gold and major stock indices year-to-date, according to Binance CEO Richard Teng.

Bitcoin’s price dropped again at the May 13 opening of Wall Street, as selling pressure persisted despite softer-than-forecast U.S. inflation data. The move comes after new figures from the U.S. Bureau of Labor Statistics showed weaker consumer price index (CPI) growth, typically considered positive news for risk-sensitive assets like cryptocurrencies.

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CPI data for April revealed a 2.3% increase over the previous 12 months, the smallest annual rise since February 2021, according to the official release. Meanwhile, U.S. stock markets opened higher, with the S&P 500 and Nasdaq Composite Index both climbing at the start of trading.

Bitcoin, tracked as BTC/USD, struggled to maintain support above $104,000 and instead moved lower, as reported by Cointelegraph Markets Pro and TradingView. Market observers noted that the cryptocurrency is oscillating near key liquidity levels, with analysts like Daan Crypto Trades suggesting the market may experience increased volatility ahead.

Crypto analyst Michaël van de Poppe noted, “Bitcoin is stalling here for a little bit, which is completely fine. Even if it goes back to $97,500–98,000, we’ll still be in an uptrend and building up for new all-time highs.” Trading firm QCP Capital added that Bitcoin remains, “caught in a tug-of-war between its identity as ‘digital gold’ and its function as a risk-on proxy,” with current market signals indicating a possible range-bound period.

Despite short-term price movements, some industry leaders remain optimistic. Binance CEO Richard Teng highlighted Bitcoin’s resilience in a post on X, noting the cryptocurrency’s double-digit gains since major global events in April. He stated, “BTC is reinforcing its position as a resilient alternative asset—outperforming gold, the S&P 500, and the Nasdaq year-to-date. The momentum is undeniable.”

Trade experts believe Bitcoin could hover between key price points as the broader macro narrative shifts from protectionism to renewed global optimism. The recent increase in illiquid Bitcoin supply also indicates that long-term holders continue to accumulate, as noted in related market updates.

This article is for informational purposes only. Readers should conduct their own research before making investment decisions.

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