Bitcoin Stalls Despite Cooling US Inflation: Analyst Cites Weak Spot Demand and Leverage Risks

BitcoinWorld Bitcoin Stalls Despite Cooling US Inflation: Analyst Cites Weak Spot Demand and Leverage Risks Bitcoin’s price has failed to stage a meaningful rebound even after the release of the latest U.S.

consumer and producer price index data, which typically influence market sentiment.

According to a recent analysis by CryptoQuant contributor XWIN Japan, the lack of upward momentum can be attributed to weakening spot buying, thin liquidity, and an overhang of leveraged positions.

Why the Expected Rally Didn’t Materialize Investors often view cooling inflation as a bullish signal for risk assets like Bitcoin, as it may prompt the Federal Reserve to ease monetary policy.