U.S. CPI Data Sparks Optimism, Bitcoin Stabilizes Above $83K

Key moments

Bitcoin Surged Past $84,000, Buoyed by Positive U.S. Inflation Data

On Thursday, Bitcoin experienced a surge that saw it reach just under $84,300 before stabilizing at a position above the $83,000 threshold. This upward movement was directly correlated with data published by the U.S. Bureau of Labor Statistics, revealing that the Consumer Price Index (CPI) had experienced a modest 0.2% increase in February, when seasonally adjusted. This resulted in the annual inflation rate dropping to 2.8%, a figure that fell below market expectations.

The data provided a momentary boost, fueling hopes that the Federal Reserve might consider a more accommodative monetary policy, potentially leading to interest rate cuts. Such a scenario would typically favor risk-on assets like Bitcoin.

Despite the encouraging inflation figures, fears of a U.S. recession and escalating global trade tensions prevented Bitcoin’s recovery from fully solidifying. Concerns about global trade disruptions and increased U.S. inflation, potentially leading to an economic downturn, have arisen from President Trump’s tariffs on steel and aluminum and his threats of further trade duties against Europe.

Despite reassurances from Trump and his administration, market participants remain cautious about the potential effects of these trade policies. The president’s unpredictable tariff strategy, marked by temporary exemptions for certain nations, has exacerbated market volatility. Consequently, highly speculative assets like Bitcoin tend to underperform during periods of heightened uncertainty and risk aversion. This heightened risk aversion is evident in Bitcoin’s 2025 performance. While U.S. stock markets have seen losses, Bitcoin’s decline has been more pronounced. The wider cryptocurrency market has also experienced a downturn, particularly in March and throughout 2025, with Bitcoin in particular dropping sharply once the enthusiasm that followed the 2024 U.S. election waned.