Analyst Warns of Crypto Storm Amid Bitcoin Weakness and Upcoming US Inflation Data

5 hour ago 6 sources negative

Key takeaways:

  • Analyst caution stems from extreme insider selling, a bearish signal often preceding market corrections.
  • Delayed Fed rate cuts due to strong jobs data are pressuring crypto by reducing near-term liquidity hopes.
  • A potential Fed Chair change adds policy uncertainty, creating a volatile backdrop for Bitcoin's long-term bullish case.

Fresh caution has entered the crypto conversation as an analyst known as Crypto Chiefpriest warns of an upcoming "storm" in the markets. The alert centers on rising instability across major assets, with Bitcoin (BTC) briefly dropping toward the $60,000 zone before recovering near $67,000. Silver also showed weakness after touching highs above $80. Crypto Chiefpriest interprets the recent rebound not as confirmation of safety but as a temporary pause inside a fragile structure.

The analyst connects this market behavior to insider activity observed earlier in 2026. He highlights an insider sell-to-buy ratio near 4.83 during January, the most extreme imbalance recorded since 2021. This data suggests executives reduced exposure at elevated valuations instead of adding new positions, shaping a defensive outlook for the months ahead. His strategy now emphasizes capital protection as uncertainty expands.

Simultaneously, the broader crypto market is bracing for potential volatility from delayed US inflation data. The January Consumer Price Index (CPI) report, now scheduled for release this week, has gained outsized importance. This follows January's stronger-than-expected jobs report, which added 130,000 nonfarm payrolls and pushed unemployment to 4.3%, delaying expectations for near-term Federal Reserve rate cuts and strengthening the "higher-for-longer" interest-rate outlook.

Traders are evaluating whether the CPI will support the Fed's 2% target or confirm persistent inflationary pressures. Tim Sun, Senior Researcher at HashKey Group, noted that "good news" for the economy, such as robust growth or sticky prices, is currently treating markets to "bad news" by delaying liquidity injections. Data from the CME FedWatch tool shows a nearly 95% probability the Fed will keep rates unchanged at 3.50%-3.75% in the near term.

Adding another layer of complexity is the potential long-term shift in monetary policy. President Trump's nomination of pro-Bitcoin advocate Kevin Warsh to replace Jerome Powell as Federal Reserve Chair (effective post-May) could influence risk-asset sentiment and Bitcoin's trajectory in the coming months.

Despite the short-term caution, Crypto Chiefpriest maintains a long-range bullish scenario for Bitcoin. He outlines a potential path where BTC could reach between $180,000 and $200,000 after deeper volatility completes its course, dependent on macro stabilization, renewed liquidity, and sustained adoption.

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