In March 2025, the US CPI indicated a drop in inflation to 2.4%. This is a significant decrease from the previous month’s 2.8%, surprising analysts who expected a steady rate of 2.5%.
The cooling inflation is beneficial for Bitcoin, reducing the odds of interest rate hikes by the Federal Reserve. Bitcoin’s price rose, attributed to President Trump’s announcement of a tariff pause, now trading at around 81,800 USD.
The probability of a Federal Reserve interest rate cut in May dropped sharply from 57% to just 15%. Traders are carefully monitoring CPI data, impacting their strategies and shaping market sentiment.
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