Right after the report dropped, Bitcoin’s price jumped to $83,371. Lower inflation means the Fed is less likely to tighten the screws on the economy. Stocks went up too. Everyone’s feeling a bit more optimistic.
There’s also something called Core CPI, which ignores food and energy prices. That came in at 3.1%, a touch below the 3.2% folks were expecting. This is the first time since July 2024 that both regular and Core CPI have dipped. It hints that inflation might finally be chilling out.
If inflation keeps calming down, the Fed might loosen up its policies a bit. That could pump more money into markets. Traditional investments reacted pretty predictably. The US dollar and Japanese yen both took a hit.
However, not everyone feels convinced by the positive outlook. Certain experts fear that Donald Trump’s trade tariffs, if implemented, might drive prices up again. Still, a lot of people see this as a win for Bitcoin. It tends to thrive when money’s flowing more freely.
This all comes on the heels of a solid jobs report earlier this week that steadied things out. Fed Chair Jerome Powell recently said the economy’s still doing alright. So, they’re not rushing to slash rates. Meanwhile, traders are placing bets on a rate cut at the next Fed meeting, as indicated by the CME FedWatch tool.
