Bitcoin Steadily Rebounds! U.S. February CPI Misses Expectations, Fed Rate Cut Expectations Rise!
TradingKey - U.S. CPI data reinforces expectations of a Fed rate cut this year, driving Bitcoin back above $83,000.
On Thursday, CPI data boosted the crypto market, fueling Bitcoin's (BTC) rebound. Over the past 24 hours, Bitcoin gained nearly 1%, reaching $83,566. In the short term, BTC faces resistance at the $90,000 level.
Bitcoin Price Chart, Source: TradingView.
The latest U.S. Consumer Price Index (CPI) data for February came in lower than market expectations, strengthening expectations for a Fed rate cut this year. The data showed an annual CPI rate of 2.8%, below the expected 2.9%, while overall CPI declined by 0.1%.
Earlier, Federal Reserve Chair Jerome Powell and Governor Christopher Waller, and other officials stated that they were in no rush to cut rates. However, inflation data and potential pressure from the Trump administration may compel them to act.
Market analyst Anthony Pompliano suggested that the Trump administration might create market volatility to pressure the Fed into cutting rates. Additionally, Matt Mena, a crypto research strategist at 21Shares, noted, "Declining inflation could prompt the Fed to accelerate rate cuts, which typically provide more liquidity to the market, thereby boosting the prices of Bitcoin and other risk assets."
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