CPI report today: What it means for crypto - The Bitcoin News

Financial markets, including the crypto world, are focused on the US inflation report this week. The latest Consumer Price Index (CPI) will be released on Wednesday, and investors are hoping for signs that inflation is continuing to ease.

Why this CPI report is so important

Inflation expectations point to an increase of 0.3% in February, following a 0.5% rise in January. On an annual basis, inflation could fall below 3% for the first time since early 2023, with an expected decline to 2.9%.

Nevertheless, inflation remains above the Federal Reserve’s (Fed’s) 2% target, meaning interest rates may remain high for longer. Wage growth and the cost of services, in particular, play a major role, while demand in certain sectors is declining.

Additional uncertainty comes from Donald Trump’s proposed trade tariffs on products from Canada, Mexico, and China. If these continue to push prices higher, the Fed could be forced to maintain tighter monetary policy.

What this means for the crypto market

The crypto market reacts strongly to inflation figures. A lower-than-expected CPI could raise hopes of interest rate cuts from the Fed, which would be positive for Bitcoin (BTC) and altcoins. Higher inflation, on the other hand, would increase the likelihood of prolonged restrictive monetary policy, which could put pressure on risky assets.

According to financial podcaster Brian Rose, a positive inflation report could be the next boost for the crypto market. “This could be a strong catalyst for the bull market,” says Rose. “Small projects and crypto could start to rise if the inflation numbers turn out better than expected.”

US CPI data drops today at 12:30 PM GMT. 🚨

If the inflation numbers come in positive, it could be a strong catalyst for the bull market.

Smallcaps and crypto could start pumping.

Be ready. 👀 pic.twitter.com/xEKIFcJiWk

— Brian Rose, Founder & Host of London Real (@LondonRealTV) March 12, 2025

The Crypto Fear and Greed Index is currently at 34, a slight improvement from the previous day’s reading of 20 (Extreme Fear). The total crypto market capitalization has increased by 1% in the last 24 hours, but trading volume has decreased by 27%, indicating a cautious stance among investors.

In addition to the CPI report, markets will also see the Producer Price Index (PPI) and weekly initial jobless claims on Thursday. These data provide further insights into inflation and the labor market and can influence expectations for the Fed.

The coming days could be crucial for financial markets. If the inflation numbers come back positive, it could trigger the long-awaited bullish momentum for crypto. However, with looming trade tariffs and other economic uncertainties, the risk of disappointment remains.

Image by A M Hasan Nasim from Pixabay