#TrumpTariffs second report in COINTELEGRAPH that informs:

Bitcoin and ETH prices fluctuate after inflation cools and tariffs from the US and China retreat

The drop in CPI and the reduction in tariffs boost cryptocurrency prospects, despite economic concerns and uncertainty over Fed rates.

Key point:

The strength of the crypto market remains even as investors assess the impact of the increase in the US debt ceiling.

The cryptocurrency market responded positively to the Consumer Price Index (CPI) report released on Wednesday and the reduced prospects of an escalation in the trade war between the US and China. Demand for alternative protection instruments typically decreases in these scenarios; nonetheless, Bitcoin

BTC

R$ 588.191

approached US$ 109.000, while Ether

ETH

R$ 14.656

rose by 3%, trading above US$ 2.800.

Although it is early to call this a trend, the crypto market seemed to slightly decouple from traditional assets. The S&P 500 index gave back some of its previous gains, initially driven by President Donald Trump's announcement of a new trade agreement with China.

According to the agreement, both nations will reduce tariffs to the levels observed in February 2025, easing tensions and eliminating retaliatory taxes. However, the performance of the stock market suggests that investors were disappointed, despite the significant reduction in the risk of an economic crisis.

The annual inflation rate of 2.4% reported by the US CPI brought some relief, especially in the context of rising inflation concerns due to the ongoing global trade war. Normally, these developments would boost confidence in stocks and strengthen the dollar, but investors still show unease with the growing US public debt.