#StaySAFU US Inflation Cools to 2.4%: Bitcoin Poised for a Breakout?
The latest U.S. inflation data has sparked optimism in financial markets, especially among crypto investors. According to the Labor Department, the Consumer Price Index (CPI) rose by 0.1% in March, easing from 0.2% in February. On a year-over-year basis, CPI dropped to 2.4%, down from 2.8% the previous month and below Wall Street’s forecast of 2.6%.
In addition, Core CPI—which excludes volatile food and energy prices also showed signs of cooling. It rose by just 0.1% in March, bringing the annualized Core CPI down to 2.8%, from 3.1% in February and below the market expectation of 3%.
These lower-than-expected inflation figures have reinforced market confidence, triggering speculation about a potential breakout in Bitcoin’s price. Analysts believe that easing inflation may prompt a shift in monetary policy by the Federal Reserve.
This inflation report is particularly important, as the Fed closely watches CPI data to inform its interest rate decisions. With inflation cooling faster than anticipated, expectations are growing for an upcoming rate cut. Adding to the speculation, recent reports suggest that Fed Chair Jerome Powell may consider an emergency rate cut, especially as global financial markets face heightened uncertainty.
The softer inflation print has already begun fueling bullish sentiment across risk assets, with Bitcoin’s price gaining momentum in anticipation of looser monetary policy ahead.
Following the release of the latest U.S. CPI data, $BTC Bitcoin saw a sharp rally, climbing nearly 8% to trade around $81,772. The bullish momentum was further fueled by Donald Trump's announcement of a 90-day pause on his proposed tariff plans, boosting overall investor sentiment.
In the past 24 hours, BTC’s trading volume jumped 12%, reaching $68 billion, reflecting heightened activity and renewed interest from traders. The world’s leading cryptocurrency also briefly touched an intraday high of $83,541, signaling strong upward momentum amid improving macroeconomic conditions and easing