Bitcoin prices continued their surge today, driven by US consumer inflation (CPI) data which recorded a decrease to 2.4% for March. Investors are awaiting this important data from the US Labor Department for clues on inflationary pressures following the global trade war tensions triggered by President Donald Trump’s tariff policies.
The latest report showed that US CPI rose just 0.1% in March, down from 0.2% in February. On an annual basis, the inflation rate was 2.4%, lower than Wall Street’s expectation of 2.6%. Meanwhile, core inflation (Core CPI), which excludes food and energy prices, also recorded an increase of 0.1% and fell to 2.8% on an annual basis, lower than the market expectation of 3%.
This decrease in inflation rate has sparked optimistic sentiment among investors, with many analysts expecting a possible surge in Bitcoin prices in the near future.
This CPI data is one of the important factors considered by the US Federal Reserve (Fed) in formulating monetary policy. With inflationary pressures easing, expectations for interest rate cuts are growing stronger. In fact, the latest report also hints that Fed Chairman Jerome Powell may announce an emergency rate cut due to global market uncertainty.
Immediately after the US CPI announcement, the price of Bitcoin jumped almost 8% and is now trading around $81,772, while daily trading volume also jumped 12% to $68 billion. Bitcoin also managed to reach a 24-hour high of $83,541 after President Trump announced a 90-day delay to his tariff plan.
At the same time, the US 10-year bond yield fell 1.6% to 4.325% while the US Dollar Index fell more than 1.03% to 101.332. This shows that investors are increasingly turning to high-risk assets such as Bitcoin in an atmosphere of easing inflationary pressures. If the Fed starts to cut interest rates, it is expected to further boost market sentiment and accelerate Bitcoin's price rise even more significantly.
