Bitcoin has climbed to its highest level in two months, reflecting a confluence of supportive market dynamics. The steadying of consumer price index readings has eased inflation concerns, providing a tailwind for risk assets across the board. Simultaneously, accelerating short covering—triggered as traders exit bearish positions—has amplified upward momentum in the world's largest digital asset by market cap. The convergence of cooling inflation signals and technical relief buying underscores how macroeconomic data continues to shape crypto market sentiment. With CPI expectations stabilizing, investors are repositioning portfolios, and those caught short are scrambling to cover positions, creating a self-reinforcing cycle that's propelled Bitcoin higher. This move marks a significant shift in near-term technicals, signaling renewed optimism after the extended consolidation period.