TL;DR

Annual inflation in the U.S. fell to 2.8%, improving economic expectations and pushing Bitcoin above the $84,000 mark.
The crypto market reacted positively, with notable gains seen in XRP, Cardano, and Solana.
Analysts warn of possible future inflationary risks from Trump’s tariff policies, though the Federal Reserve continues holding interest rates steady.

The latest U.S. Consumer Price Index (CPI) report immediately triggered bullish sentiment in the cryptocurrency market, significantly boosting the value of leading digital assets. In February, U.S. inflation moderated to an annual rate of 2.8%, down from January’s 3%, reinforcing perceptions of macroeconomic stability—an environment particularly beneficial for riskier assets like cryptocurrencies.

Bitcoin, the undisputed leader of the crypto market, briefly surpassed the $84,000 mark immediately after the inflation report’s release. Currently trading near $83,715, Bitcoin registered a daily gain of 3.37%, according to data from CoinGecko.

Ethereum, XRP, and BNB Also Celebrate Positive Data

Ethereum, the second-largest cryptocurrency by market cap, experienced a modest rise of 0.47%, reaching $1,910.65. However, other major cryptocurrencies in the Top 10 displayed more impressive performance: XRP notably increased by 5.52%, surging to $2.22, making it one of the day’s biggest winners.

Meanwhile, Binance’s BNB token joined the overall market optimism, posting a gain of 1.88% and trading at $558.47.

Solana and Cardano Stand Out; Dogecoin and TRON Remain Cautious

Solana was another prominent gainer, with its value rising 3.67% to reach $128.33. Cardano (ADA) also demonstrated considerable strength, jumping 5.06% to $0.7533, reflecting renewed interest from both retail and institutional investors.

Nevertheless, other popular cryptocurrencies like Dogecoin and TRON recorded more modest gains. Dogecoin rose slightly by 0.89%, reaching $0.1707, whereas TRON experienced a marginal increase of 0.38%, settling at $0.2225.

Despite the current positive market outlook, experts remain cautious due to potential risks posed by President Donald Trump’s proposed tariff policies. Federal Reserve Chairman Jerome Powell has warned recently that sustained tariff implementation could reverse the inflation moderation trend, potentially causing upward pressures on consumer prices.

For now, the Federal Reserve continues holding interest rates steady in the range of 4.25% to 4.5%, awaiting clearer signals about future inflation trends. Within this environment of economic uncertainty, cryptocurrencies continue to solidify their appeal as attractive investment alternatives, further strengthening their position in global financial markets amid growing optimism among investors.

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Filed under: News - @ March 12, 2025 2:19 pm