Michigan's inflation expectations showed mixed signals in January data. The 1-year expected inflation came in at 4.2%, matching the previous month's reading but slightly above the 4.1% forecast. More notably, 5-year inflation expectations ticked up to 3.4%, exceeding the anticipated 3.3% and rising from December's 3.2% level.

These upticks in medium-to-longer term inflation expectations could influence Federal Reserve policy considerations, which in turn affects broader asset markets including cryptocurrency. Traders should monitor whether this trend continues in upcoming economic data releases, as persistent inflation signals may reshape market positioning around interest rate expectations and macro volatility.