Bitcoin Gains as February CPI Inflation Rate Falls Below Expectations

Bitcoin (BTC) saw modest gains as February's Consumer Price Index (CPI) inflation rate was reported at 2.8%, lower than the expected 2.9%. This has raised hopes for potential interest rate cuts by the US Federal Reserve, benefiting risk-on assets.

Key Highlights

CPI increased by 0.2% in February, down from January's 0.5% increase.
Core CPI rose 0.2% month-over-month, below forecasted 0.3%.
Investor optimism is growing over a possible dovish monetary policy shift from the Fed.
BTC prices climbed from approximately $81,000 to $84,500 after the data release.
Total crypto market cap declined by about $600 billion recently.

After experiencing declines earlier this month, analysts predict a potential recovery for BTC later in 2025. Arthur Hayes suggests further short-term declines may occur, but quantitative easing could stabilize markets and aid recovery. Another analysis predicts BTC could reach $180,000 by 2026.

Current BTC price is $81,541, reflecting a 0.6% gain over the past 24 hours.