US inflation 3.3% lifts Bitcoin above $72K after CPI
US inflation came in at 3.3% year-on-year as the March CPI report was released. Monthly CPI rose 0.9%, with energy prices driving the increase. The energy index jumped nearly 11%, while gasoline costs surged 21.2%.
Core CPI (excluding food and energy) rose 2.6% y/y, slightly below expectations of 2.7%, suggesting underlying price growth was steadier than the headline figure.
Despite the inflation pressure on consumer prices, Bitcoin reacted positively. BTC briefly pushed above $73,000 and continued trading above $72,000. At the time of writing, Bitcoin traded around $72,780, up about 1% over 24 hours and roughly 9% over seven days.
Traders are also watching the Federal Reserve. CME Group’s FedWatch tool shows a 98.4% probability the Fed keeps rates unchanged at the April meeting, with little room for near-term cuts.
For crypto traders, the key takeaway is that headline US inflation stayed above the Fed’s 2% target, yet the market still bid up Bitcoin after the CPI print, highlighting how CPI “details” (especially core vs. energy) can move BTC even when the broader macro backdrop remains restrictive.
Bullish
Bitcoin reacted positively even though headline US inflation stayed above the Fed’s 2% target. The market focused on the CPI composition: the monthly increase was heavily driven by energy (especially gasoline), while core inflation came in slightly softer than expected. That mix often reduces the immediate risk of an aggressive policy repricing.
Historically, crypto (and BTC specifically) has shown two common patterns around CPI: (1) when the print is “headline-hot but core-cool,” BTC can still rally as traders anticipate less restrictive policy than feared; (2) when both headline and core accelerate, BTC rallies fade quickly as rate-cut odds collapse.
Here, traders priced the Fed outcome as largely unchanged (98.4% chance of no April cut), which limits the downside tail. In the short term, momentum is likely supported by the breakout attempt above $73K and continued holding above $72K. In the long term, the sustainability depends on whether subsequent CPI prints keep core inflation steady and whether energy-driven volatility doesn’t keep reigniting headline inflation. If later data confirms “core stability,” BTC could extend the move; if energy keeps pushing headline CPI higher repeatedly, the market may shift back to a more risk-off stance.