Bitcoin Rises After February Inflation Comes in Lower Than Expected
Bitcoin (BTC) saw a modest increase as February’s Consumer Price Index (CPI) inflation data came in below expectations. The softer inflation numbers have raised speculation that the Federal Reserve may lower interest rates, potentially boosting risk-on assets like cryptocurrencies.
Bitcoin Gains as Inflation Declines
According to the U.S. Bureau of Labor Statistics, the seasonally adjusted CPI rose 0.2% in February, bringing the annual inflation rate down to 2.8%. This was below the 2.9% forecast and marked a decrease from January’s 0.5% rise.
Core CPI, which excludes food and energy prices, also increased by 0.2% month-over-month, lower than the expected 0.3%. Annually, core inflation stood at 3.1%, slightly below the projected 3.2%.
The lower-than-expected inflation data has strengthened investor expectations that the Federal Reserve could cut interest rates to boost market liquidity. Stocks and cryptocurrencies tend to benefit from lower rates.
Following the release of the CPI report, Bitcoin climbed from $81,000 to $84,500, while Dogecoin (DOGE) gained 2.9% over the past 24 hours.
Market Volatility Amid Economic Policies
Last month, Bitcoin declined after CPI inflation came in higher than anticipated. Additionally, economic policies from former U.S. President Donald Trump, including significant trade tariffs on Canada, Mexico, and China, have added pressure to the crypto market.
Bitcoin has experienced a sharp decline in March, falling from $94,700 on March 2 to $76,800 by March 11. The total cryptocurrency market capitalization has also decreased by $600 billion, dropping from $3.2 trillion to $2.6 trillion.
Bitcoin Expected to Rebound
Despite recent declines, analysts foresee a market recovery by late 2025. While Bitcoin could face short-term losses, crypto entrepreneur Arthur Hayes predicts that central banks may use
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