Bitcoin and Ethereum Surge as Inflation Plummets in March – Decrypt

Bitcoin’s price increased on Thursday following a report that U.S. consumer prices rose less than expected. The Consumer Price Index (CPI) showed a 2.4% rise over the last 12 months, below the anticipated 2.6% increase. Core inflation, excluding food and energy prices, also came in lower than expected at 2.8%, down from 3.1% the previous month.

David Hernandez, a crypto investment strategist, commented that this news is positive for equities and Bitcoin. The recent increase in the CPI was driven by higher new vehicle prices, partially offset by lower prices for used cars and trucks.

In response to Trump’s tariff decisions, consumer prices fell 0.1% compared to February, the first decline since 2020. The prices of Bitcoin, Ethereum, and Solana showed gains, with Bitcoin reaching $82,000 and Ethereum and Solana hovering around $1,600 and $114, respectively.

Trump’s temporary tariff adjustments provided market relief, with a focus on negotiations with other countries rather than broader trade conflicts. The Federal Reserve is closely monitoring the impact of these trade policies on inflation and remains cautious in its approach.

Although inflation remains above the Fed’s target, the recent readings show a decrease in both CPI and core inflation. Overall, the trade situation and its impact on inflation are being closely monitored by market analysts and policymakers.

Editor’s note: Updated to include a comment from 21Shares’s David Hernandez. Edited by Stacy Elliott.