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Bitcoin (BTC) recorded slight gains as the Consumer Price Index (CPI) inflation rate for February came in lower than expected. The softer inflation reading fuelled hopes of interest rate cuts by the US Federal Reserve (Fed), potentially benefiting risk-on assets.
Bitcoin Jumps As Inflation Cools
According to data from the US Bureau of Labor Statistics, the CPI increased by 0.2% in February on a seasonally adjusted basis, bringing the annual inflation rate down to 2.8%. This figure not only fell below economists’ projection of 2.9% but also marked a decline from January’s 0.5% monthly increase.
Additionally, the core CPI – an inflation measure excluding food and energy prices – rose 0.2% month-over-month, underperforming most forecasts of 0.3%. On an annual basis, core CPI came in at 3.1%, slightly below the 3.2% consensus.
The lower-than-anticipated inflation data has reignited investor optimism, with hopes the Fed may pivot to a more dovish monetary policy by cutting interest rates to boost market liquidity. Lower interest rates typically favor risk-on assets like stocks and cryptocurrencies.
Following the data release, BTC posted modest gains, climbing from approximately $81,000 to $84,500. Leading memecoin Dogecoin (DOGE) also saw a 2.9% rise in the past 24 hours.
It’s worth noting that last month, BTC declined after CPI data came in hotter than expected. Since then, US President Donald Trump’s economic policies – particularly high trade tariffs on countries like Canada, Mexico, and China – have further hindered bullish momentum for digital assets.
Earlier this month, BTC experienced one of its sharpest declines, dropping from around $94,700 on March 2 to as low as $76,800 on March 11. Over the same period, the total crypto market cap shrank by approximately $600 billion, falling from $3.2 trillion to approximately $2.6 trillion at the time of writing.
BTC Price Projected To Make Recovery
While the current bearish trend has dragged BTC and other cryptocurrencies to multi-month lows, industry experts believe digital assets are likely to rebound in the later quarters of 2025.
For instance, crypto entrepreneur Arthur Hayes recently suggested that while BTC may face further declines in the short term, central banks will likely resort to quantitative easing to stabilize stock markets – a move that could also help risk-on assets recover their losses.
Similarly, recent analysis by CryptoQuant contributor ibrahimcosar forecasts that despite the current downturn, BTC is poised to reach $180,000 by 2026. A weakening US dollar is also likely to hasten the price recovery. At press time, BTC trades at $81,541, reflecting a 0.6% gain over the past 24 hours.
Featured image created with Unsplash, charts from TradingView.com
Ash is a dedicated crypto researcher and blockchain enthusiast with a passion for diving deep into the evolving world of decentralized technologies. With a background in writing and a natural curiosity for how digital assets are shaping the future, he has immersed himself in various sectors of the cryptocurrency space, including decentralized finance (DeFi), NFTs, and liquidity mining. His journey into crypto started with a desire to fully understand the technology behind it, leading him to explore and engage with these systems firsthand.
Ash’s approach to DeFi goes beyond surface-level research as he actively participates in decentralized protocols, testing their functionality to gain a deeper understanding of how they operate. From experimenting with staking mechanisms to exploring liquidity mining strategies, he is hands-on in his exploration, which allows him to provide practical, real-world insights that go far beyond theoretical knowledge. This immersive experience has helped him develop a comprehensive grasp of smart contracts, token governance, and the broader implications of decentralized platforms on the future of finance.
In the NFT space, Ash’s interest is driven by the technology’s potential to reshape ownership and creativity in the digital age. He has explored various NFT projects, gaining insights into how these digital assets function within different ecosystems. His focus is on understanding the evolving relationship between creators and communities, as well as the innovative uses of blockchain technology to establish authenticity and provenance in the digital world. Ash’s research in this area often touches on the intersection of culture, technology, and community-driven projects.
A key area of his expertise lies in liquidity mining, where he has engaged with various decentralized platforms to understand how liquidity provision contributes to the functionality and security of DeFi ecosystems. Ash’s hands-on involvement has allowed him to analyze the risks, rewards, and broader implications of liquidity pools, giving him a well-rounded perspective on this integral part of DeFi. His understanding of risk management and protocol design allows him to provide insights into how these systems can be navigated effectively, with an emphasis on both opportunity and caution.
When it comes to communicating these complex topics, Ash’s writing is grounded in clarity and depth. He excels at breaking down intricate blockchain concepts into easily digestible information for a wide audience. Whether explaining the workings of decentralized exchanges or outlining the future potential of blockchain technology, Ash ensures that his content is accessible to both those new to the space and experienced participants looking for deeper insights.
Beyond DeFi and NFTs, Ash explores a wide array of emerging blockchain applications. His research spans areas like cross-chain technologies, decentralized governance, and blockchain’s potential to integrate with traditional finance. He is continuously learning and adapting to the latest developments, ensuring that his insights are both timely and relevant. His interest extends to how these technologies are creating new possibilities for decentralization, transparency, and trust in a variety of industries.
Ash’s commitment to engaging with the crypto space firsthand gives him a unique perspective that goes beyond what can be learned from research alone. His practical involvement allows him to stay ahead of the curve, offering readers and enthusiasts a clear and comprehensive understanding of the rapidly evolving world of blockchain. Whether delving into the technical mechanics of DeFi or exploring the cultural impact of NFTs, Ash’s approach is always rooted in curiosity, research, and a desire to make this technology accessible to all.
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