A downside inflation surprise would allow easing expectations to recover, potentially extending Bitcoin's rebound with falling yields and a weaker dollar.
Too little corroboration in the last 3 days to call a trend (1 article). Watching for it to gain traction.
A surprise downside in inflation could lead to expectations of monetary easing, which may bolster Bitcoin's rebound through falling yields and a weaker dollar. Such conditions could enhance ETF demand, supporting the continuation of the rebound.
Easing expectations and a weaker dollar can create a favorable environment for Bitcoin by reducing borrowing costs and increasing the attractiveness of non-yielding assets, thus potentially increasing demand and driving capital inflows into the cryptocurrency market.
"A downside surprise would give later easing expectations room to recover. Falling yields and a weaker dollar could help ETF demand extend the rebound, though current probabilities leave that as the lower-confidence branch before the report."