Key dealers
- US inflation in February showed a decrease, with annual CPI dropped to 2.8% from the previous 3%.
- Economists warn that Trump’s tariffs could reverse the cooling inflation trend and lead to further price increases.
Consumer prices rose 0.2% in February from January, according to recent CPI data Published Wednesday, which gives an annual inflation to 2.8% – a decrease from 3% last month. Bitcoin nailed over $ 84,000 in response to the lower than expected information.
Core CPI, which excludes volatile food and energy prices, increased 0.2%month over month, with the annual interest rate set at 3.1%, in January 3.3%.
Economists, however, warn that President Trump’s customs policy may keep prices increased in the coming months.
The inflation report comes as the markets largely expect the Fed to keep interest rates stable in the short term. From the latest data from CME Group’s Fedwatch tool, priced traders with a low probability of an interest rate cut at the Central Bank’s meeting next week.
Fed Chairman Jerome Powell Warned Last Friday that Trump’s adopted and proposed tariffs can lead to a series of price increases, which can potentially cause consumers to anticipate higher inflation.
The inflation rate seems to have stopped after previous declines and remained stubbornly over the Fed’s goal. While expectations of long -term inflation have remained relatively stable, short -term expectations have increased, partly due to customs problems, according to Powell.
The Fed, who had implemented interest rate cuts, has paused its monetary policy adjustments and kept the federal funds stable at 4.25%-4.5%.
Unless inflation is clearly in line with the Fed’s goal, the Fed will maintain a narrow monetary policy. This can keep Bitcoin prices volatile as investors weigh the potential for future interest rate cuts against ongoing financial uncertainty.
Bitcoin observed resistance to short -term macroeconomic changes indicates that its price may not be strongly affected by inflation data. Nevertheless, general economic conditions and investors’ feeling can still affect its value.
Bitcoin acted over $ 83,000 before the inflation data release and recovered from a recent dip below $ 80,000. Crypto access has won 1.5% in the last 24 hours, per coytecko data.
