Bitcoin News

Story: Bitcoin Surges Above $84K as Inflation Cools

By Pankaj K

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Bitcoin has surged to over $84,000, reflecting a positive market response to the recent U.S. inflation data for February 2025, which came in cooler than expected.

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The Consumer Price Index (CPI) for February 2025 showed an annual inflation rate of 2.8%, which is notably lower than both January's 3% and the projected 2.9%.

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Core CPI, a key measure watched by the Federal Reserve (Fed), excludes volatile food and energy prices and showed a more moderate increase of 3.1% year-over-year.

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At the time of writing, Bitcoin's price surged above $84,000, driven in part by the strong performance of the cryptocurrency in response to the inflation data.

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The Federal Reserve is expected to maintain its interest rate range of 4.25% to 4.5% during the March 2025 Federal Open Market Committee (FOMC) meeting.

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The latest data and the expectations of interest rate cuts have been bolstered by ongoing recession fears, partly due to President Donald Trump’s tariff policies.

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Bitcoin’s price movements have been directly influenced by these macroeconomic factors, with the cooling inflation offering a brief reprieve for the asset.

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