Analysis: Bitcoin's rebound is merely a minor correction rather than being driven by dominant news, the market focuses on the Consumer Price Index released on Wednesday

Despite a rebound in Bitcoin prices, Presto Research analyst Min Jung believes that Tuesday's increase only represents a minor correction after the market's recent sharp decline. "We see the market recovering, but this looks more like a slight bounce back after yesterday's crash, with no dominant news driving this trend," said Jung.

"Furthermore, the stock market closed slightly lower on the day rather than selling off heavily again." Investors are now focusing on Wednesday's release of US consumer price index data, which is a key measure of inflation. "Today’s CPI release will be a major event as the entire market is watching inflation trends and how the Federal Reserve will respond," Jung stated.

LVRG Research Director Nick Ruck noted: “Although Bitcoin and other cryptocurrencies have eased somewhat, this rebound has merely corrected overly cautious risk aversion sentiment.” The price recovery was partly driven by news that Trump had cancelled his plan to impose 50% tariffs on Canadian steel and aluminum scheduled for Wednesday.

Earlier on Tuesday, Ukraine agreed to Trump's proposed 30-day ceasefire proposal. The American leader is now seeking dialogue with Russian President Putin to end conflicts between their two countries.

Kronos Research Chief Investment Officer Vincent Liu cautioned that although tariffs have not been widely implemented yet to disrupt market momentum, volatility and macroeconomic risks still need careful handling.