In an analysis on March 27, 2025, Truflation, titled “Where is Bitcoin heading next? Whenever the inflation index later experienced a clear decline in pause or reversed, Bitcoin tended to increase.
Where is Bitcoin heading next?
Truflation’s study pointed out the background formed by the aftermath of Covid-19. This easy period of money, in which Bitcoin overlaps from 2022 and 2023 by 2022 and 2023, has continued to inflict an inflation, and the US Federal Reserve Bank has reversed the course. Interest rate hikes and quantitative strengthening have become a major tool for fighting price pressure, and the Federal Reserve aims to lower consumer price inflation to 2%.
According to the Truflation Report, the real -time inflation read value was low at 2%in June 2023. The official consumer price index (CPI) announced by the Labor Statistics Bureau reflects the pattern in July 2023 to 3%to one and a half months later. But since mid -2023, the Truflation’s index has not just falled to a certain line. Instead, you can vibrate between the top and the lower limit, showing periodic rumor patterns to stabilize or reverse the course. Truflation now believes that each of these periodic “inflections” is closely related to the follow -up of the price of Bitcoin.
This report mentions four separate periods of truflation, which is popular, from September 2023 to September 2024, and then flattened or rebounded. In these cases, the price of Bitcoin rose soon. Truflation suggests that the fifth case can now be developed. In early 2025, the inflation index decreased sharply and reached 1.30%(1.80%) before rebounding. This situation reminds us of the previous turmoil, which predicts a new Bitcoin purchase based on the data of Truflation.
“If the rumor trend of Truflation is suspended or overturned, Bitcoin tends to be rally. This pattern has already been repeated several times, and it can be developed again when the history is rhythm again.”
Truflation focuses on sensitivity to changes in the future prediction nature of Bitcoin and changes in liquidity conditions. Strong disinfection usually urge the Federal Reserve Bank to make interest rates hikes and soon change the challenge. Steep and endless disinfection can cause fear of the economic downturn, but the slowing of the rumor trend or the suspension of pause is often reassuring the market that the economy does not slip due to economic downturn.
This “soft landing” scenario interferes with risk feelings. Merchants and investors who think that inflation have been conquered to delay further strengthening or accelerate interest rate cuts deliver optimism to assets such as Bitcoin.
This report admits that single data, including the truflation itself, is absolutely not shaken by complex assets and widely traded with bitcoin. However, real -time inflation expectations emphasize repercussions throughout the global market, which affects stocks, goods and foreign exchange transactions in addition to encryption. In anticipation of changes in expectations, some investors may be before the curve when the official CPI report and the central bank declaration eventually evolve or contradict.
“Truflation does not affect Bitcoin in a vacuum cleaner. Single data sources do nothing. But inflation expectations are spread in a wide range of markets, from stocks to goods, especially bond yields and foreign exchange markets.”
BTC was traded at $ 84,461 in the press time.
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