Bitcoin rallied 6% in response to January's softer-than-expected US inflation data, with headline CPI rising 2.4% year-over-year, slightly below estimates. However, gaps remain in the CPI record due to the October 2025 data blackout from the government shutdown, complicating inflation assessments and market confidence. Investors are now focused on the upcoming March CPI report and Federal Reserve meeting, with stablecoin liquidity playing a critical role in crypto market dynamics.

