The crypto market is regaining stability as Bitcoin stabilizes above $81,000, ahead of a crucial U.S. inflation report. Layer-1 and layer-2 cryptocurrencies along with gaming tokens have shown recovery, reflecting signs of 'peak fear' on Wall Street. The VIX, Wall Street's fear gauge, has crossed above zero, indicating expected near-term volatility. Analysts believe the risk-reward for entering long positions in U.S. stocks is improving, despite existing market stress. The inflation metrics suggest a possible softening as expectations rise for rate cuts this June. The upcoming inflation report could significantly impact crypto prices, with forecasts pointing to a month-over-month increase of 0.3% in February. Should the CPI unexpectedly exceed expectations, it may result in a decline in Bitcoin prices, possibly down to the $74,000 range. Insights point toward a bearish sentiment lingering in the market amid volatile trading patterns and external economic indicators, complicating the outlook for crypto assets.

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