Bitcoin Consolidates Amidst Low Volatility; Institutional Adoption Grows Despite Inflation Surge

Bitcoin is currently consolidating between $91,000 and $102,000, marking its 81st day of limited movement, according to Bitfinex Alpha. This consolidation occurs amidst historically low volatility, influenced by geopolitical tensions and macroeconomic uncertainties. Over the past week, Bitcoin's price fluctuated by just 4.3%, closing with a modest 0.82% gain. Altcoins have largely faced downturns, with meme coins like PEPE declining 46.4% over the past month. The Inter-Exchange Flow Pulse (IFP) for Bitcoin has turned bearish for the first time since June 2024, signaling a potential downside. In January 2025, U.S. inflation surged, with the Consumer Price Index increasing by 0.5%, pushing the annual rate to 3%. Despite these challenges, institutional adoption continues to grow. Strategy has increased its Bitcoin holdings by 7,633 BTC, totaling 478,740 BTC. Abu Dhabi's Mubadala Investment Company invested $436.9 million in BlackRock's spot Bitcoin ETF.