Bitcoin, Ethereum and other cryptocurrencies spiked after the latest US inflation data showed an exceeded expectations. March Consumer Price Index (CPI) It's increased It was 2.4% year-on-year, lower than the forecast 2.6%. Core CPI, which excludes volatile food and energy prices, fell 2.8% from 3.1% in February. Inflation data has brought easing to markets, including crypto assets such as Bitcoin, which rises 7.5% to $82,000. Also, Ethereum rose to $1,600, while Solana rose 11% to around $114.
The inflation report comes after President Donald Trump decides to delay the 90-day tariff hike. This is a move that eases trade-related uncertainty. Trump previously had raised concerns about growing trade tensions as he had imposed high tariffs on Chinese goods and increased tariffs on foreign cars and auto parts. However, some tariff suspensions have led to positive responses from the market and helped ease fears of economic slowdown.
Despite this, Trump has raised tariffs on Chinese imports to 125%, maintaining a particularly harsh stance on trade with China. The Federal Reserve closely monitors the impact of inflation and tariffs. Inflation is declining, but exceeds the Fed's 2% target. This latest data has been declining for the second consecutive time inflation and core inflation.
The decline inflation has strengthened optimism in the market. Bitcoin and Ethereum, along with other cryptocurrencies, benefited from the news. Investors hope that a decline in inflation could ultimately lead to a more difficult position from the Federal Reserve, including interest rate cuts. Analysts are looking closely at future CPI reports to see how tariffs will affect future inflation.
Inflation data in March showed a sharp decline in inflation despite increased tariffs. This gave the market a sense of security as the Federal Reserve raised hopes that it might adjust its policies to counter economic pressure. Several tariff suspensions, combined with better-than-expected inflation figures, provide similar support for stocks and cryptocurrencies.
For Bitcoin, its price rose at $82,000, showing a 7.5% increase in the past day, while Ethereum rose 11%. The broader market also saw positive movements in the wake of inflation news, but the Federal Reserve response is still uncertain, but under close scrutiny. The latest data shows potential changes in inflation trends, but trade tensions with China continue to influence market sentiment.
