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Bitcoin (BTC) recorded slight positive factors because the Shopper Value Index (CPI) inflation fee for February got here in decrease than anticipated. The softer inflation studying fuelled hopes of rate of interest cuts by the US Federal Reserve (Fed), probably benefiting risk-on belongings.
Bitcoin Jumps As Inflation Cools
In accordance with 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 fee right down to 2.8%. This determine not solely fell under economists’ projection of two.9% but additionally marked a decline from January’s 0.5% month-to-month enhance.
Associated Studying
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 under the three.2% consensus.
The lower-than-anticipated inflation knowledge has reignited investor optimism, with hopes the Fed might 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 belongings like shares and cryptocurrencies.
Following the information launch, BTC posted modest positive factors, climbing from roughly $81,000 to $84,500. Main memecoin Dogecoin (DOGE) additionally noticed a 2.9% rise up to now 24 hours.
It’s value 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 nations like Canada, Mexico, and China – have additional hindered bullish momentum for digital belongings.
Earlier this month, BTC skilled one among 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 whole crypto market cap shrank by roughly $600 billion, falling from $3.2 trillion to roughly $2.6 trillion on the time of writing.
BTC Value Projected To Make Restoration
Whereas the present bearish pattern has dragged BTC and different cryptocurrencies to multi-month lows, business specialists consider digital belongings are more likely to rebound within the later quarters of 2025.
Associated Studying
As an example, crypto entrepreneur Arthur Hayes just lately advised that whereas BTC might face additional declines within the brief time period, central banks will probably resort to quantitative easing to stabilize inventory markets – a transfer that might additionally assist risk-on belongings get better their losses.
Equally, current evaluation by CryptoQuant contributor ibrahimcosar forecasts that regardless of the present downturn, BTC is poised to succeed in $180,000 by 2026. A weakening US greenback can also be more likely to hasten the worth restoration. At press time, BTC trades at $81,541, reflecting a 0.6% achieve over the previous 24 hours.
Featured picture created with Unsplash, charts from TradingView.com