The lower-than-expected Consumer Price Index (CPI) led the US stock market to break out of its recent downtrend, with tech stocks rebounding strongly, and NVIDIA and Tesla's stock prices soaring. BTC oscillated between $80K and $84K yesterday, while ETH was affected by the Hyperliquid (HYPE) manipulation incident, falling nearly 1% in 24 hours.
(BTC Rises! US February Inflation Rate Reaches 2.8%, CPI Lower Than Market Expectations)
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ToggleCPI Eases Concerns About Stagflation
US President Trump on Wednesday said the US will respond to the EU's retaliatory measures against its new 25% tariffs on steel and aluminum, increasing the risk of further escalation of Trump's global trade war. Earlier that day, after the Trump administration continued to impose global tariffs on imported materials such as steel and aluminum, Canada announced new 25% tariffs on about $20.8 billion worth of US products.
The US February CPI and core CPI, excluding food and energy prices, rose 0.2% month-on-month, while the market generally expected a 0.3% increase. Given that tariffs could raise the cost for US households, this better-than-expected result is a positive signal and has eased investors' concerns about stagflation.
However, Scotiabank analysts said that although the latest consumer price index has improved, the inflation outlook remains uncertain due to the developments in trade policy, and uncertainty still exists. Against this backdrop, the Fed is unlikely to change its policy guidance anytime soon.
The next Fed rate decision will be announced on 3/19, and the market generally expects the Fed to keep rates unchanged, while according to the CME FedWatch index, traders believe the Fed may cut rates again in June and September.
The market will focus on the US Producer Price Index (PPI) and initial jobless claims tonight, as well as the University of Michigan Consumer Sentiment Index on Friday.
BTC 83K, ETH Still Declines
BTC oscillated between $80K and $84K yesterday, closing at $83,411, up nearly 1% in 24 hours.
ETH, on the other hand, was affected by the Hyperliquid (HYPE) manipulation incident and remained around $1,900, down nearly 1% in 24 hours.
The top 10 cryptocurrencies by market cap mostly saw small gains. The Fear & Greed Index has risen slightly from 27 yesterday to 34, indicating a slight easing of market sentiment.
Risk Warning
Cryptocurrency investment is highly risky, and its price may fluctuate dramatically, and you may lose your entire principal. Please carefully evaluate the risks.
