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US inflation: March CPI data supports Bitcoin
By Davide Grammatica
At a time when Bitcoin is suffering, slightly better than expected US inflation data is supporting BTC
CPI data for February 2025
The price movement of Bitcoin, which is struggling to even maintain $80k, may have found support from the latest US inflation data, demonstrating once again how the first cryptocurrency is directly influenced by macroeconomic data.
It is no coincidence that investors’ eyes were on US inflation, and therefore on the CPI data for January 2025.
As usual, this figure is fundamental. It can determine the Fed’s future choices regarding interest rates, and consequently market movements. The Fed’s recent reluctance to cut rates is already a problem for a “risky” asset like Bitcoin, and therefore lower-than-expected inflation could favor the entire crypto sector.
The difficulties of BTC are also a sign of the uncertainty of investors, who are currently waiting for further clues about the short-term future of the asset.
BTC's response
Forecasts for the February 2025 CPIs suggested substantial stability for the monthly and annual index, at 2.9%.
The data was slightly better than expected, describing a slight decrease in inflation:
Consumer Price Index (yoy): +2.8%
Core Consumer Price Index (yoy): +3.1%
For now, Bitcoin is responding by catching its breath and climbing back up towards $84k, in a context in which the markets seem to have already “priced in” the only interest rate cut expected for 2025.
However, the macro data should be much more “surprising” to help the first cryptocurrency recover, with BTC well below $100k.
