Bitcoin prices increase with low inflation in the United States to 2.8 % in February, which enhances optimism in the market

Bitcoin increased beyond $ 84,000 on Wednesday after new inflation data showed that consumer prices are rising lower than expected in February, which reduced fears of high federal reserve rates. Consumer price index (CPI) more By 2.8 % during the past year, less than 2.9 % of economists. Core CPI, which excludes flying food and energy prices, increased by 3.1 %, a decrease from 3.3 % in January. The data has strengthened the investor’s confidence, prompting both the encryption and stock markets. Ethereum reached $ 1938, Solana reached $ 127, and Dow Jones Industrial Mestuter futures futures rose 223 points. S&P 500 and NASDAQ also gained 0.8 % and 0.9 %, respectively.

The shelter costs, which represented a large part of the consumer price index, increased by 0.3 % in February. The Statistics Office indicated that this was partly compensated by the low prices of gasoline tickets and airlines. President Donald Trump’s reaction to data related to social reality was. Saying“Everything comes down!” The tariff of its 25 % administration on steel and aluminum imports raised concerns about the potential inflationary effects, adding uncertainty to the economic view.

Minutes of the Federal Reserve meeting in December indicated that these policies can keep inflation higher than 2 %. Traders were now priced by three interest rates by the end of the year, up from one one month ago, according to the CME Fedwatch tool. The FOOC Open Market Committee (FOMC) is scheduled to meet next week to issue updated expectations for economic growth and interest rates.

The PPI price index, which was identified on Thursday, is expected to provide more insight into inflation directions. If wholesale prices are also lower than expected, the markets may gather more on the hopes of price discounts.

Although inflation is cooled, it remains 2 % higher than the Federal Reserve Bank, which means that politicians may have caution. Powell recently stated that the central bank will take a measurable approach to cash dilution, With reference The economy remains “in a good place”. Investors are now closely monitoring if the Federal Reserve Bank will confirm a shift towards price discounts in the coming months.