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

When the eagerly awaited inflation figure of the USA came in below expectations, Bitcoin (BTC) and Ethereum (ETH) experienced a rapid increase.

The U.S. released the Consumer Price Index CPI( for February )TÜFE(. Accordingly, the annual inflation rate fell to 2.8%, below the market's expectation of 2.9%. The lower-than-expected inflation announcement led to a decline in the U.S. dollar index )DXY(, directing investors towards cryptocurrencies.

Just before the announcement, Bitcoin, which was trading at $82,900, quickly rose to $84,400 shortly after the data was released. A similar movement also occurred for Ethereum )ETH(. Prior to the data, ETH, which was trading at $1,900, saw $1,940 with a rapid increase after the inflation data.

When the data was released, the US Dollar Index )DXY( showing the value of the US dollar against other currencies also declined. Prior to the data, the DXY, which was at 103.6 level, fell to 103.2 level after %2.8 inflation data. The decline of DXY paved the way for increased demand for cryptocurrencies like Bitcoin and Ethereum.

The lower-than-expected inflation data strengthened the expectation in the markets that the Federal Reserve)FED may continue with interest rate cuts. How the Fed will shape its interest rate policy at the meeting in March will be a new agenda item closely monitored by investors.