- The American CPI for February fell to 2.8%, below market expectations of 2.9%.
- Bitcoin exceeded $ 84,000 compared to its recent decreases after the publication of inflation data.
- However, reprisal tariff plans for American trade partners weighed on the market, destroying most post-CPI gains.
Bitcoin is negotiated at nearly $ 83,000 on Wednesday in the middle of the world trade war tensions between the United States and international trade partners. The higher digital active ingredient and several upper cryptocurrencies have erased most of their earlier earnings during the day, which was triggered by data below the American consumer price index (IPC) for February.
The crypto market remains neutral despite the February CPI lower than what
Monthly data from the United States IPC for February was lower than expectations in all key measures, according to the Labor of Statistics (BLS) office.
The CPI title reached 2.8%, descending the expectations of market players by 2.9%. The basic IPC – which excludes food and energy prices – slowed down to 3.1%, lower than 3.2% and 3.3% estimates. On a monthly basis, the two data from the IPC increased by 0.2%. This has marked the first time since July that the title and the basic ICC were lower than market expectations.
The cryptography market has experienced a brief increase according to Soft CPI data, Bitcoin exceeding $ 84,000 and several altcoins noting two -digit gains. The S&P 500 and the Nasdaq 100 also recorded slight winnings.
The reduction in IPC data historically benefits the crypto and the stock market, because it influences the Federal Reserve (Fed) to promote a low interest rate environment, which is good for risk assets.
However, Bitcoin and the S&P 500 quickly erased most of their earnings earlier in the day, because the feeling of low investors seems to weigh on the market. This follows the new threats and pressure from President Donald Trump on international trade partners.
“The gourmet reaction in the main shares of shares shows that market optimism is attenuated by persistent risks such as tariff pressures and growth uncertainties,” FXSTREET Mike Marshall, research manager at Amberdata, told FXSSTREET.
President Trump imposed new 25% levies on all imports of steel and aluminum from Canada on Monday. In return, Canada issued reprisal prices out of $ 21 billion in American products on Wednesday.
Trump also threatened to counter the new European Union reprisal rates, announced Wednesday on Wednesday on Wednesday.
The EU has announced new prices out of $ 28 billion in American goods in response to the 25% Trump tax on aluminum and steel imports in the United States. Consequently, the feeling of the market leans towards a risk strategy.
Current market mentality:
1. CPI inflation lower than forecasts: Selling stocks, we enter a recession.
2. higher than expected CPI inflation: sales actions, rate cuts are canceled.
3. IPC inflation as planned: sell stocks, inflation does not drop.
The feeling is incredibly …
– The Kobeissi letter (@kobeissiletter) March 12, 2025
Given the effect of the trade war on the crypto, as well as the growing correlations with the stock market, Bitcoin could resume its short -term trend.
“There are growing speculation about a recession, which feeds market volatility. Recent comments from potus grateful for risk only added to uncertainty,” said Anastasija Plotnikova, CEO of Fideum, in a note at FxStreet.
“The crypto remains very sensitive-while the softening of inflation supports the appetite for risks, any economic slowdown or a sudden point of inflation of the prices could shake up current stabilization,” she added.
The entire market capitalization of cryptography is down 2.2% at the time of writing.
