Bitcoin price today rose to $83,500 after the US published encouraging February Consumer Price Index (CPI) data. Ethereum (ETH) approached $2,000, while XRP, Solana, and Cardano jumped by over 5% after the CPI report.
The headline CPI dropped to 2.8%, lower than the median estimate of 2.9%, while the core CPI fell from 3.3% to 3.1%.
Bitcoin price rises as US CPI Crashes
Bitcoin jumped to $84,000 and approached the crucial resistance level at $85,000 after the US published encouraging inflation data.
The headline CPI dropped from 0.3% in January to 0.2% in February, better than the median estimate of 0.5%. This decline translated to an annual decline from 3.0% to 2.8%, also better than the expected 2.9%.
Core inflation, which excludes the volatile items like food and energy, also slumped to 3.1%, the lowest level in years.
These numbers pushed crypto prices higher today, with Bitcoin soaring above $84,000, and the market cap of all coins up by over 2% to $2.70 trillion.
Still, these inflation numbers lack a clear context because of Donald Trump’s recent decision to impose tariffs on goods from other countries. These tariffs will likely lead to higher consumer prices as companies make the necessary adjustments.
Focus on FOMC Decision
The US CPI data came as the market waited for the upcoming Federal Reserve interest rate decision between March 18 and 19. Economists expect the bank to signal what to expect in the coming months now that the US inflation is expected to shoot higher. In an emailed statement to CoinGape, Ryan Lee, the head of Bitget Research said:
“Bitcoin price might stagnate or drop from its current $83,000-$76,000 range, especially if a hawkish outcome strengthens the dollar and yields, pressuring risk assets. Even a dovish surprise like a rate cut may fail to ignite a sustained rally, given potential market skepticism and overriding macro uncertainties, while the end of quantitative tightening offers only modest support at best.”
The bond market anticipates a situation where the Federal Reserve will focus on the US economic growth and point to interest rate cuts later this year. It had hinted that it would slash rates three times this year now that recession odds have jumped.
The post Breaking: Bitcoin Price Nears $85K as US CPI Crashes to 2.8% in February appeared first on CoinGape.
