Bitcoin spikes as US inflation meets estimates

In February, inflation in the U.S. rose by 0.4% month-on-month and 6% year-on-year.

Today’s data aligned with Dow Jones and Nomura estimates. Bitcoin soared on the news, hurtling past $25,400 before dipping again. 

BTCUSD chart by TradingView

February’s inflation figure is only the second to be calculated under the BLS’s new weighting system. The Consumer Price Index (CPI) will be based on a single calendar year of data, using consumer expenditure data from 2021. Previously the data was calculated using two years of expenditure data.

The U.S. Federal Reserve is set to give its latest interest rate decision next week, on March 22. The central bank had been expected to increase rates. Chair Jerome Powell wouldn’t rule out an increase in the pace of rates last week, although three U.S. banks have failed since — giving some hope that the Fed might ease up on its aggressive hikes. 

Grayscale analysts wrote, “it seems unlikely that the Fed will continue an aggressive rate-raising regime.” Nomura analysts expect the Fed to cut rates 25 basis points due to “looming financial stability risk.” 

© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.