The latest US consumer price index (CPI) report shows a decline that may impact future economic scenarios, including cryptocurrencies.
Drop in US Consumer Price Index
The US Consumer Price Index (CPI) dropped to 2.8% year-over-year, below the expected 2.9%. Furthermore, core CPI came in at 3.1%, failing to meet the forecasted 3.2%. This marks the first time since July 2024 that both metrics fell below expectations, suggesting a potential easing of 'sticky' inflation in the US economy.
Market Reaction to Inflation Decline
US stocks and cryptocurrencies, such as Bitcoin, rallied on the soft inflation data. Uncertainty due to volatile US tariff policies persists, but economic clarity is anticipated in April. The soft CPI report has increased the odds of multiple Fed rate cuts in 2025.
Forecasts for the Crypto Market
With expected rate cuts, Bitcoin and major altcoins could strengthen. Experts predict Bitcoin's potential bottom around $72k-$74k, with a possible rally ahead. Market participants continue to accumulate Bitcoin amidst market corrections.
The drop in US inflation could serve as a catalyst for future Federal Reserve rate cuts, bolstering digital asset positions.
