Bitcoin Spikes Past $84K on CPI Report, But Fails to Sustain Gains
Bitcoin briefly surged above $84,000 after the latest U.S. inflation report, but the rally quickly lost momentum, leaving the crypto market mostly flat for the day.
As of now, Bitcoin (BTC) is trading at $82,800, down 0.5% over the past 24 hours. The CoinDesk 20 Index, which tracks the top 20 cryptocurrencies (excluding exchange tokens, stablecoins, and meme coins), has slipped 0.8% in the same period.
The biggest drag on the index is ether (ETH), which has been the worst performer, tumbling 3.5% to around $1,880. The ETH/BTC ratio has fallen to 0.022, its lowest level since April 2020, right before the DeFi boom that propelled projects like Uniswap and MakerDAO into the spotlight. The ratio has now dropped a staggering 67% since its peak in November 2021.
“Although today’s softer-than-expected CPI report supports the case for faster rate cuts, crypto markets have reacted cautiously,” said Dr. Youwei Yang, Chief Economist at BIT Mining, in a note to CoinDesk. “Investor sentiment remains fragile, and a single positive inflation print isn’t enough to reignite confidence.”
Yang pointed to Trump’s tariff policies as a potential headwind for inflation and markets, saying, “Aggressive tariffs risk prolonging inflation while simultaneously pressuring financial markets. The Fed is caught between the need to manage inflation expectations and preventing economic deterioration.”
Markets are currently pricing in Federal Reserve rate cuts beginning as early as May or June, with up to 100 basis points of easing expected by October.
In traditional markets, U.S. equities saw a moderate rebound after weeks of selling. The Nasdaq climbed 1.2%, while the S&P 500 gained 0.5% at the close of trading.
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