Bitcoin jumped past $83,900 after new Consumer Price Index (CPI) data revealed inflation rising less than forecasted, easing fears of aggressive Federal Reserve rate hikes and fueling risk appetite in both crypto and traditional markets.
The February CPI report showed a 0.2% monthly increase, below the 0.3% forecast, while year-over-year inflation slowed to 2.8% versus expectations of 2.9%, according to the Bureau of Labor Statistics. Core CPI, which excludes volatile food and energy prices, rose 3.1% year-over-year, also softer than expectations.
Following the report, Bitcoin surged more than 3%, with Ethereum climbing to $1,938, while altcoins like Solana (SOL) and XRP posted 5% gains. Stocks also reacted positively — Dow Jones Industrial Average futures rose 223 points, while the S&P 500 and Nasdaq 100 advanced 0.8% and 0.9%, respectively.
Market sentiment had been shaky in recent weeks as inflation concerns clashed with trade policy uncertainty following President Donald Trump’s 25% tariffs on steel and aluminum imports. However, the lower-than-expected CPI print revived investor confidence, with traders now pricing in a higher probability of Federal Reserve rate cuts in the coming months.
Thursday’s Producer Price Index (PPI) data could further shape inflation expectations. If wholesale prices also show a cooling trend, markets may rally further in anticipation of monetary policy relief.
In the past 24 hours, a total of 116,409 traders were liquidated, with total liquidations amounting to $427.96 million, according to CoinGlass.
The largest single liquidation order occurred on HTX, where a BTC-USDT trade worth $60 million was wiped out.
After posting losses earlier this week, crypto stocks are finally rebounding in pre-market trading following softer-than-expected CPI inflation data. The largest corporate holder of Bitcoin, MicroStrategy (MSTR) climbed 2.46% to $267.00, while crypto exchanges Coinbase (COIN) gained 2.46% to $196.40 and Robinhood (HOOD) led the recovery, surging 6.30% to $38.65. Bitcoin mining company MARA Holdings (MARA) remained flat at $13.32. The bounce-back in crypto-linked stocks follows renewed investor optimism, with risk assets rallying across both crypto and traditional markets.