Bitcoin’s price fired on Thursday (10) after the disclosure of US Consumer Price Index (IPC) data. The report indicated a drop in inflation from 2.8% in February to 2.4% in March.

IPC data released today came below market expectations, as analysts projects an inflation of 2.5% to March.

Fall inflation drives Bitcoin

The Consumer Price Index (IPC) is an economic indicator that measures inflation based on the average price variation paid by consumers for goods and services. When the data from IPC are below expectationsthey can serve as a catalyst for risk assets such as bitcoin. Until the publication of this text, cryptocurrency was negotiated at US $ 81,800, accumulating up over 7% in the last 24 hours.

In the United States, IPC data is released monthly by Bureau of Labor Statistics. This has become an important event for the market, especially for Bitcoin and other cryptocurrencies.

The BTC is sensitive to macroeconomic indicators such as the IPC, as they influence the Federal Monetary Policy decisions. When IPC data show increased inflation, markets usually anticipate interest rates.

According to the CME FEDWatch datathe likelihood of a cut in the Federal Interest Rate Reserve in May fell from 57% to only 15%. This is due to the 90-day break in the rates announced by President Trump and the newly told Minutes of the March FOMC. This news also brought relief to cryptocurrency, which was under pressure from US tariffs – yesterday (9), the price of Bitcoin rose to more than $ 80,000.

How the CPI impacts the crypto market

However, higher interest rates can strengthen the US dollar and make risk assets as bitcoin less attractive, often leading to short -term price falls. On the other hand, below -expected inflation numbers may suggest a milder Fed posture, which may increase investor’s appetite by Bitcoin as a value reserve alternative.

Institutional traders and investors closely follow the IPC numbers. They adjust their portfolios based on the perceived trends of inflation and expectations of monetary policy.

In addition, Bitcoin’s appeal as inflation protection plays a psychological role. When the IPC is high, some investors turn to the BTC as a safeguard against the erosion of the purchasing power of fiduciary currencies. This can raise your price in the medium to the long run, even if short -term volatility remains.