When the U.S. released its most recent inflation report, Bitcoin and Ethereum surprised markets by climbing despite a climate of extreme fear.

What Happened

The latest CPI data showed a softer-than-expected rise, cooling inflation but keeping it above the Federal Reserve’s 2% target. The market interpreted the easing as a sign that the Fed may pause rate hikes.

Why It Matters for Bitcoin

Lower inflation often reduces pressure on risk assets and can strengthen Bitcoin’s role as a hedge. The rally indicates growing confidence that crypto may benefit from a more accommodative monetary stance.

Market Impact

Bitcoin surged to $60,800, its highest level in 18 months, while Ethereum climbed 12% to $4,100. The Fear & Greed Index dipped to 16, signalling extreme fear, yet crypto moved higher.

What to Watch Next

  • Upcoming Fed policy meeting – potential rate decision.
  • U.S. CPI release – could confirm inflation trajectory.
  • Global market volatility – impacts on risk appetite.

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Source

Source: Decrypt