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Bitcoin (BTC) recorded slight beneficial properties because the Shopper Worth Index (CPI) inflation price for February got here in lower than anticipated. The softer inflation studying fuelled hopes of rate of interest cuts by the US Federal Reserve (Fed), probably benefiting risk-on property.
Bitcoin Jumps As Inflation Cools
In response to knowledge from the US Bureau of Labor Statistics, the CPI elevated by 0.2% in February on a seasonally adjusted foundation, bringing the annual inflation price all the way down to 2.8%. This determine not solely fell beneath economists’ projection of two.9% but additionally marked a decline from January’s 0.5% month-to-month enhance.
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Moreover, the core CPI – an inflation measure excluding meals and power costs – rose 0.2% month-over-month, underperforming most forecasts of 0.3%. On an annual foundation, core CPI got here in at 3.1%, barely beneath the three.2% consensus.
The lower-than-anticipated inflation knowledge has reignited investor optimism, with hopes the Fed could pivot to a extra dovish financial coverage by reducing rates of interest to spice up market liquidity. Decrease rates of interest sometimes favor risk-on property like shares and cryptocurrencies.
Following the info launch, BTC posted modest beneficial properties, climbing from roughly $81,000 to $84,500. Main memecoin Dogecoin (DOGE) additionally noticed a 2.9% rise prior to now 24 hours.
It’s price noting that final month, BTC declined after CPI knowledge got here in hotter than anticipated. Since then, US President Donald Trump’s financial insurance policies – notably excessive commerce tariffs on international locations like Canada, Mexico, and China – have additional hindered bullish momentum for digital property.
Earlier this month, BTC skilled considered one of its sharpest declines, dropping from round $94,700 on March 2 to as little as $76,800 on March 11. Over the identical interval, the entire crypto market cap shrank by roughly $600 billion, falling from $3.2 trillion to roughly $2.6 trillion on the time of writing.
BTC Worth Projected To Make Restoration
Whereas the present bearish development has dragged BTC and different cryptocurrencies to multi-month lows, business specialists consider digital property are more likely to rebound within the later quarters of 2025.
Associated Studying
As an illustration, crypto entrepreneur Arthur Hayes not too long ago suggested that whereas BTC could face additional declines within the quick time period, central banks will possible resort to quantitative easing to stabilize inventory markets – a transfer that might additionally assist risk-on property recuperate their losses.
Equally, latest evaluation by CryptoQuant contributor ibrahimcosar forecasts that regardless of the present downturn, BTC is poised to achieve $180,000 by 2026. A weakening US greenback can be more likely to hasten the value restoration. At press time, BTC trades at $81,541, reflecting a 0.6% acquire over the previous 24 hours.
Featured picture created with Unsplash, charts from TradingView.com