Analysis: If the CPI data is higher than expected, it may affect the market's expectations of the Fed's two interest rate cuts this year.

According to Matrixport analyst Markus Thielen, Bitcoin has broken out of a consolidation triangle and is currently holding above $116,817. It performed strongly during the Asian trading session, but saw some selling in European and US markets. While seasonal weakness may lead to a slow rise in prices, the overall trend remains upward. The report notes that higher-than-expected CPI data could impact market expectations for two Federal Reserve rate cuts this year. Furthermore, continued inflows into the cryptocurrency sector suggest long-term investors may reap rewards this year.