Analysts: Markets are shrugging off tariff concerns and digesting CPI data, with algorithmic trading responding positively to macroeconomic data
On February 13, crypto markets rallied after the release of the US CPI data. "The initial CPI reaction was strong, but the market rebounded as investors took a more cautious approach and realized that more data was needed to confirm inflation trends," said Min Jung, an analyst at Presto Research.
Rachael Lucas, an analyst at BTC Markets, attributed the market recovery to trading robots reacting to stabilising macroeconomic conditions, saying: "Algorithmic trading plays a significant role in these rapid movements, many bots are programmed to react instantly to Powell, CPI data and other key words in major economic reports, and given the recent clearing-driven volatility, any stabilisation of macro conditions could trigger aggressive buybacks, especially from these automated strategies."
Lucas explained that the market appears to be shrugging off tariff-related concerns and digesting the latest CPI data, as prices are picking up without a prominent bullish catalyst. "Risk assets, including cryptocurrencies, have responded positively to the stabilization of macroeconomic conditions, and if liquidity conditions remain supportive, the market may be ready for the next move higher."