#CryptoRoundTableRemarks Key Takeaways:

February CPI inflation expected at 2.9% YoY, down from 3.0% in January.

Core CPI forecasted at 3.2%, slightly easing from 3.3% previously.

US Federal Reserve's rate-cut outlook may shift based on CPI data.

Crypto markets, stocks, and US dollar fluctuations depend on inflation trends.

US Inflation Data Expected to Show Cooling, But Risks Remain

The US Bureau of Labor Statistics (BLS) is set to release its February Consumer Price Index (CPI) report on Wednesday at 12:30 GMT, offering a critical insight into inflation trends. Market analysts anticipate a slight drop in inflation, which could influence Federal Reserve policy, the US dollar, and risk assets like cryptocurrencies.

The headline CPI inflation rate is expected to come in at 2.9% year-over-year (YoY), down from 3.0% in January, marking the first dual decline in core and headline inflation since July 2024. The core CPI inflation rate, which excludes food and energy, is projected to fall to 3.2% from 3.3%.

Monthly inflation projections:

Headline CPI: +0.3% MoM

Core CPI: +0.3% MoM

Analysts at TD Securities predict a broad-based deceleration in inflation, noting that housing costs and goods prices may decline, contributing to an easing trend.

How the CPI Data Could Affect the Federal Reserve's Rate Decision

The Federal Reserve has signaled caution on rate cuts, with Chair Jerome Powell stating last week that economic conditions remain ".

Crypto investors are watching inflation data closely:

Lower inflation → Bullish for Bitcoin and altcoins as Fed rate cuts become more likely.

Higher inflation → Bearish for crypto as Fed remains restrictive, boosting the US dollar.

Current crypto market sentiment:

Bitcoin: +0.57% at $82,185

Ethereum: -1.75% at $1,889

XRP: +1.6%

Dogecoin: +2.5%

Solana, Cardano: Slight declines

Meanwhile, CoinShares' Digital Asset Fund Flows