Bitcoin (BTC) pushed back above the $70,000 level after a cooler-than-expected U.S. inflation reading helped revive risk appetite across markets, according to CoinDesk.

### What happened

- The U.S. Consumer Price Index (CPI) for January reportedly rose **2.4% year-over-year**, slightly below forecasts.

- Lower inflation can increase expectations for **earlier interest-rate cuts**, which tends to support risk assets like equities and crypto.

- Prediction markets cited by CoinDesk showed increased odds of a **25 bps rate cut in April**.

### Why it matters

The move highlights a recurring pattern in crypto: **macro data can spark sharp rebounds**, but **market positioning and psychology** may take longer to reset.

CoinDesk notes that, despite the price recovery, the **Crypto Fear & Greed Index** remained in **“extreme fear,”** a sign that many traders still see rallies as potential “exit ramps.” The report also referenced analysis from Bitwise suggesting that large realized losses over the prior week may resemble a **capitulation-style flush**, potentially rotating supply from weaker hands to longer-term holders.

### What to watch next

- Follow-through after the weekend rebound, especially as liquidity returns.

- Whether sentiment measures improve or remain “extreme fear.”

- Additional U.S. macro releases that could shift expectations for the Federal Reserve’s next moves.

*Source: CoinDesk.*