Bitcoin Surges Above $84K as U.S. Inflation Slows More Than Expected
A sharper-than-anticipated cooldown in U.S. inflation has reignited optimism for Federal Reserve rate cuts, sending Bitcoin and stocks higher.
The Consumer Price Index (CPI) rose 0.2% in February, falling short of the 0.3% forecast and marking a notable slowdown from January’s 0.5% increase, according to the latest Bureau of Labor Statistics report. On a year-over-year basis, inflation stood at 2.8%, easing from 3.0% in January and coming in below the expected 2.9%.
Core CPI, which strips out food and energy costs, showed a similar trend, rising just 0.2% for the month versus expectations of 0.3% and down from January’s 0.4% gain. Year-over-year, core inflation measured 3.1%, a step down from 3.3% the previous month and slightly under the projected 3.2%.
Bitcoin, Stocks Gain as Inflation Eases
Bitcoin (BTC) responded quickly to the softer inflation numbers, climbing over 1% to $84,100. Meanwhile, Nasdaq 100 futures extended their rally, gaining 1.5%, while traditional safe-haven assets like bonds, the U.S. dollar, and gold saw little movement.
Markets have faced heightened volatility in recent weeks, with inflation concerns and tariff-related economic uncertainty weighing on sentiment. The S&P 500 has declined 10% in the past month, while Bitcoin, which hit an all-time high of $109,000 in January before President Trump’s inauguration, had dropped 30% at one point earlier this week.
Fed Rate Cut Bets Strengthen Ahead of Key Data
Before the release of today’s inflation report, traders were pricing in a 40% probability of a Federal Reserve rate cut in May and an 85% chance of at least one reduction by June.
Attention now turns to Thursday’s Producer Price Index (PPI) report, which could either validate or challenge today’s CPI data, providing further insight into the Fed’s potential policy path.
