The US Bureau of Labor Statistics released February's Consumer Price Index (CPI) data, showing inflation has decreased to 2.8% YoY. This outcome has significantly influenced the cryptocurrency market.
US Inflation Decline
Compared to January's figures of 3% inflation, February's data showed a reduction to 2.8% YoY, below expectations of 2.9%. This brings the inflation rate closer to the 2% threshold targeted by the Federal Reserve.
Impact on Bitcoin Price
The positive inflation data has fueled Bitcoin's price increase, which surged past $84,000 shortly after the announcement. This reflects the growing interest in cryptocurrencies as risk assets.
Role of the Fed and Future Plans
The Federal Reserve closely monitors CPI data as a factor influencing potential interest rate adjustments. The Fed cut the benchmark three times in 2024 but has yet to act in 2025. The central bank had previously projected two rate cuts, which could ease borrowing conditions.
The reduction of US inflation to 2.8% positively impacts the cryptocurrency market, enhancing interest in assets like Bitcoin, and highlights the importance of the Federal Reserve's future actions.
