Bitcoin Price Rises as New Data Shows Inflation Cooled to 2.8% in February

The Bitcoin price rose on Wednesday after a widely viewed inflation meter in the US demonstrated that consumer prices rose less than expected last month.

The consumer price index (CPI) rose by 2.8% in the 12 months to February, the Bureau of Labor Statistics (BLS) said. Economists expected The index, which follows price changes in a wide range of goods and services, to rise 2.9% compared to a year earlier.

The so-called core inflation was the stripping of volatile food and energy prices and has risen to 3.1%in the last 12 months. It is a clear improvement compared to the annual increase of 3.3% of January. The measure, which is used to gauge underlying inflation trends, also came slightly below the expectations of economists.

President Donald Trump’s on-again, off-again approach to rates has rattled markets in recent weeks. Wednesday’s CPI print indicated that inflation was cooling in the midst of the trade war, but remained increased from the annual increase of 2.4% of September.

Bitcoin Sprogged to $ 84,000 and rose by 1% in 10 minutes, according to the crypto data provider Coentecko. Ethereum and Solana also rose to $ 1,900 and $ 127 respectively.

The Federal Reserve has checked how Trump’s policy maneuvers could make its inflation fight more difficult. Fed chair Jerome Powell said Last week, despite recent developments, “uncertainty about the changes and their likely effects remains high.”

Trump expressed optimism on Tuesday about a recent fall in prices for eggs and gasoline. In a truth social post, the president written“It’s all coming down!”

Shelters, which are good for about a third of the CPI, rose by 0.3%in February. Although they remained the most important motivation of inflation, the BLS said that the monthly increase was partially compensated by falling ticket prices for gasoline and aircraft.

The FED is generally expected to keep the interest rates stable next week during its policy meeting, if he will also release updated projections for economic growth and interest rates.

Traders on Wednesday were added in three tariff reductions by the end of the year, according to Cme fedwatch. A month earlier, Futures traders provided only one.

Published by Stacy Elliott.