US Inflation Data Released: Here’s Bitcoin’s Reaction! - Coin Bulletin

As the eagerly awaited inflation data from the US came in below expectations, Bitcoin (BTC) and Ethereum (ETH) experienced a rapid rise.

The US announced the Consumer Price Index for March (CPI) data. According to this, the annual inflation rate fell to 2.4%, below market expectations of 2.5%. The inflation being below expectations caused a decline in the US dollar index (DXY), which directed investors towards cryptocurrencies.

Just before the announcement, Bitcoin, which was trading at 81,500 dollars, quickly rose to 82,500 dollars shortly after the data was released. A similar movement was also observed for Ethereum (ETH). ETH, which was trading at 1,588 dollars before the data, saw a rapid rise to 1,618 dollars after the inflation data.

As the data was released, the US Dollar Index, which shows the value of the US dollar against other currencies, also showed a decline at (DXY). The DXY, which was at the level of 101.9 before the data, fell to 101.4 after the inflation data of 2.4%. The decline in the DXY paved the way for an increase in demand for cryptocurrencies such as Bitcoin and Ethereum.

The fact that the inflation data was below expectations strengthened the belief in the markets that the US Federal Reserve might continue its interest rate cuts. How the Fed will shape its monetary policy at the meeting on May 7 will be a new agenda item closely monitored by investors.

Disclosed Data:

• Core Consumer Price Index (CPI) (Monthly) (March): %0.1 (Expectation: %0.3, Previous: %0.2 )
• Core Consumer Price Index (CPI) (Yearly) (March): %2.8 (Expectation: %3.0, Previous: %3.1 )
• Consumer Price Index (CPI) (Annual) (March): %2.4 (Expectation: %2.5, Previous: %2.8 )
• Consumer Price Index (CPI) (Monthly) (March): -%0.1 (Expectation: %0.1, Previous: %0.2)