Bitcoin price is approaching 85 thousand dollars, as CPI decreased in the United States to 2.8 % in February
Bitcoin price today rose to 83,500 dollars after the publication of encouraging consumer price index data (CPI). ETHEREUM (ETH) approached $ 2000, while XRP, Solana and Cardano jumped more than 5 % after the CPI report.
American stocks also flourished after the consumer price index report, as futures contracts rise to the Dow Jones and Nasdaq 100 indicators with more than 300 points. Futures in the S&P 500 rose by 60 points.
Bitcoin price rises with CPI’s failure in the United States
Bitcoin jumped to $ 84,000 and went to the decisive resistance level at $ 85,000 after the United States published encouraging inflation data.
The main consumer price index fell from 0.3 % in January to 0.2 % in February, better than an average of 0.5 %. This decrease is translated into an annual decrease from 3.0 % to 2.8 %, which is also better than 2.9 % expected. Ride
The basic inflation, which excludes volatile elements such as food and energy, has also decreased to 3.1 %, which is the lowest level in the years.
These numbers prompted the high encryption prices today, with bitcoin rising above $ 84,000, and the market reduced for all coins by more than 2 % to reach 2.70 trillion dollars.
However, these inflation numbers lack a clear context due to Donald Trump’s recent decision To impose definitions On goods from other countries. These definitions may lead to high prices of consumers, as companies make the necessary adjustments.
Focus on FOMC decision
The basic data of the US consumer price index came when the market awaited the interest rate decision in the next Federal Reserve between 18 and 19 March. Economists expect the bank to refer to what can be expected in the coming months so that it is expected that the American inflation will be launched higher. In an e -mail statement to Coingepe, Ryan Lee, Bitget Research:
“Bitcoin price may run or decrease from its current range, which ranges between 83,000 dollars -76,000 dollars, Especially if the strict result strengthens the dollar and producesClick on risk assets. Even an amazing surprise, such as lowering prices, may fail to ignite a continuous gathering, given the potential doubts in the market and renewable total doubts, while the end of quantitative tightening only provides modest support at best. “
The bond market expects a position in which the federal reserve focuses on American economic growth and indicates interest rate discounts later this year. It has hinted that it would reduce interest rates three times this year now that the recession has jumped.
Bitcoin price works well when the United States is decreased due to the effect on the federal reserve. The Federal Reserve usually reduces interest rates when inflation decreases to stimulate consumer spending. For example, the Bitcoin price increased in 2020 and 2021, when the Federal Reserve raised interest rates to nearly zero. Bitcoin also jumped in 2024, when the Federal Reserve indicated that it would reduce interest rates.
Related questions (common questions)
Bitcoin and other risk assets increased after the publication of the Consumer Consumer Index (CPI) for January.
There are increasing possibilities that inflation in the United States will begin to appear again due to Donald Trump’s tariff.
Inflation data affects bitcoin due to the effect on the federal reserve. The Federal Reserve tends to reduce interest rates when inflation decreases, which leads to high encryption prices.
Crespos
CRISPUS is an experienced financial analyst in CoingApe with over 12 years of experience. It focuses on Bitcoin and other altcoins, which covers the intersection of news and analysis. His visions were shown on famous platforms such as banklestimes, Coinjournal, Hypeindex, Seekingalpha, Forbes, Investingcube, Investing.com and MoneytransFers.com.
Responsibility: Is market research before investing in encrypted currencies? The author or post does not bear any responsibility for your personal financial loss.
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