Bitcoin Spikes Above $84K on CPI Data, But Fails to Sustain Momentum
Bitcoin briefly jumped past $84,000 following the release of U.S. inflation data, but the rally was short-lived, with the broader crypto market struggling to hold onto gains.
As of now, Bitcoin (BTC) is trading at $82,800, down 0.5% in the last 24 hours. The CoinDesk 20 Index, which tracks the top 20 cryptocurrencies excluding exchange tokens, stablecoins, and meme coins, has slipped 0.8% over the same period.
The biggest drag on the index was Ether (ETH), which dropped 3.5% to $1,880, making it the worst-performing asset. The ETH/BTC ratio has fallen to 0.022, its lowest level since April 2020, before the DeFi boom fueled by platforms like Uniswap and MakerDAO. The ratio has now declined 67% from its peak in November 2021.
“Today’s weaker-than-expected CPI report could support a case for sooner rate cuts, but crypto markets remain hesitant,” said Dr. Youwei Yang, Chief Economist at BIT Mining, in an email to CoinDesk. “The market has been in a defensive mode for weeks, and it will take more than one positive data point to shift sentiment.”
Yang also pointed to Trump’s new tariffs as a potential obstacle to rate cuts, explaining, “Tariff-driven inflation could make the Fed’s job more difficult, balancing economic stability with inflation control.”
Currently, markets expect the Federal Reserve to begin rate cuts by May or June, with up to 100 basis points of easing possible by October.
Meanwhile, U.S. equities saw a mild recovery after recent losses. The Nasdaq rose 1.2%, while the S&P 500 gained 0.5% by the close of trading.
