🟢 US CPI data improves, Bitcoin rises with momentum, interest rate cut expectations heat up again!
The US released its February CPI year-on-year data last night, which was lower than expected, with the inflation rate dropping from 2.9% to 2.8%, while the market had originally expected 2.9%. Bitcoin's price also surged to over $84,000 due to this positive news!
Meanwhile, the US Bureau of Labor Statistics also released data showing that the core CPI decreased from the predicted 3.2% to an actual announced value of 3.1%, indicating that inflation is moving closer to the Federal Reserve's healthy target range of 2%.
The US central bank is closely monitoring CPI data, as it is one of the key factors in determining interest rate adjustments and may also influence the magnitude of interest rate cuts in the US for the entire year of 2025!
The Federal Reserve has already implemented three interest rate cuts last year. Although there haven't been any substantial actions this year, the market predicts two more cuts this year, with rates potentially falling to a range of 3.75% to 4.00%.
However, interest rate cuts undoubtedly serve as a strong stimulus for the market. As rates decrease, borrowing costs lower, and investors' interest in risk assets correspondingly increases. Therefore, risk assets like Bitcoin are expected to be potential beneficiaries.
As of now, Bitcoin's price is fluctuating around $84,000, briefly breaking the 200-day simple moving average. However, whether Bitcoin can maintain this critical level this week remains a point of interest for investors.
In summary, the CPI data released for February in the US being lower than expected not only led to a slight jump in Bitcoin's price but also injected a strong stimulus into the market.
In the future, with more economic data being disclosed and the implementation of Federal Reserve policies, how will the market evolve? Everything awaits further observation.
