Inflation Slows, But Crypto Stays Flat
Inflation cooled more than expected in February, bringing hope that the Federal Reserve might soon cut interest rates. Yet, the crypto market didn’t react much to this positive news.
Wednesday’s Consumer Price Index report showed inflation at 2.8% over the past year, down from 3% in January. This beat economists’ forecasts of 2.9%.Despite this,Bitcoin (BTC) was flat at $82,770.45. The total crypto market value was $2.68 trillion, down 0.25%.
Dr. Youwei Yang, Chief Economist at BIT mining, explained why crypto didn’t react.He said, “The market is worried about policy risks, especially President Trump’s new trade tariffs.”
Yang believes the tariffs on steel and aluminum could make inflation stick. Europe is already planning to retaliate with tariffs on $28 billion worth of U.S. goods in April. This could cause market instability and job losses.
Yang added, “The Federal Reserve is in a tough spot. High inflation from tariffs makes rate cuts harder. But market crashes and job losses push the Fed to cut rates sooner.”
Crypto markets need clearer policy signals. The recent White House crypto summit didn’t provide enough guidance. “Until clearer signals emerge, fear and uncertainty will weigh on crypto market sentiment,” Yang concluded.
