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Bitcoin Reclaims $70,000 After CPI Miss Revives Rate-Cut Bets

Derivatives data point to deeply negative funding with crowded shorts, signaling elevated squeeze risk.

Overview

  • Bitcoin rebounded to roughly $69,000–$70,000 after touching near $60,000 earlier in February, gaining about 5% in 24 hours following a 2.4% January CPI print versus 2.5% expected.
  • Funding rates have flipped deeply negative with Binance’s 14‑day SMA near -0.002, the lowest since 2024, while futures open interest holds around $45 billion, increasing liquidation sensitivity.
  • Options and futures positioning skew defensive with rich put pricing and discounted short‑dated futures, reflecting persistent caution despite the bounce.
  • On‑chain metrics place a structural realized‑price floor near $55,000 and show heavy short‑term holder losses alongside steadier long‑term holder behavior, indicating ongoing supply rotation.
  • Spot‑Bitcoin ETF flows were mixed with notable net outflows on Feb. 11–12, the Fear & Greed Index sits in extreme fear, and price is compressing below $68,500–$69,000 resistance within a $60,000–$72,000 range.