U.S. Inflation Report Boosts Crypto Sentiment, Sparks Bitcoin Surge
Financial markets, especially the crypto sector, are reacting positively to the latest U.S. inflation data. According to the Labor Department, the Consumer Price Index (CPI) saw a modest increase of just 0.1% in March, easing from February’s 0.2%. On an annual basis, CPI cooled to 2.4%, a notable decline from 2.8% in February and well below Wall Street’s projected 2.6%.
Core CPI, which strips out food and energy prices, also pointed to softening inflation. It rose by a mere 0.1% in March, pulling the year-over-year figure down to 2.8%—a drop from the previous 3.1% and under the expected 3.0%.
This cooling inflation data has lifted market sentiment, with investors increasingly speculating that the Federal Reserve may shift toward a more accommodative monetary stance. Analysts are now weighing the possibility of a rate cut sooner than anticipated, especially amid ongoing global market instability.
The CPI release has already begun rippling through the crypto space. Bitcoin ($BTC) surged nearly 8% following the report, hitting around $81,772. The rally was further energized by Donald Trump’s announcement of a 90-day freeze on proposed tariffs, bolstering market confidence.
Over the past 24 hours, Bitcoin's trading volume spiked by 12%, reaching $68 billion, as traders rushed to capitalize on the bullish momentum. The cryptocurrency even briefly touched an intraday high of $83,541, driven by improving macroeconomic indicators and easing geopolitical pressures.
