The March Consumer Price Index (CPI) numbers are in, offering a more optimistic view of U.S. inflation rates. The CPI rose by 2.4% year-over-year, slightly below the expected 2.5%, while the Core CPI increased by 2.8%, also under the 3% forecast. These figures represent the lowest core inflation in four years, potentially indicating a shift in U.S. economic policy.
Despite traditionally boosting risky assets like cryptocurrencies, Bitcoin showed a surprising response to this news, briefly dropping from $82,500 to $81,500. This reaction occurred even after Bitcoin had surged over $6,000 following President Trump’s 90-day tariff pause.
The Fed, which has maintained steady interest rates amid inflation concerns, might reconsider its stance given these new lower inflation figures, which typically encourage lower interest rates. However, the immediate impact on the crypto market diverged from expectations, showcasing the volatility and unpredictability of digital assets.
