Ethereum and Bitcoin Rise as March’s Prices Falls Significantly

After a carefully monitored prices test in the U.S. revealed consumer prices rose far less than expected last month, the price of Bitcoin increased on Thursday.

According to the Bureau of Labor Statistics ( BLS), the Consumer Price Index ( CPI ) increased by 2.4 % over the twelve months through March. The index, which tracks price changes across a wide range of goods and services, was expected to show a 2.6 % annual increase, according to economists.

In the twelve months through March, so-called core inflation, which excludes volatile food and energy costs, increased by 2.8 %, which is also higher than economists had anticipated. It marked a significant improvement over the previous month’s core prices, which increased by 3.1 % annually.

This brings some positive reports for bitcoin and equities, according to David Hernandez, a 21Shares property manager’s crypto investment strategist, . The CPI report for the upcoming month will help determine whether taxes that were not recently imposed on some nations will have an effect at all.

A rise in new car prices helped the index ‘ raise in March. However, a reduction in used car and truck costs partly offset the new increase.

Businesses have been monitoring how consumers will react to the possibility of higher prices in Trump’s trade regime. Consumer prices have fallen 0.1 % since February, the first month-to-month decline since 2020, according to BLS.

According to crypto data provider CoinGecko, the Bitcoin price was hovering around$ 82, 000, showing a 7.5 % increase over the previous day and a 0.2 % increase in the previous hour. Ethereum and Solana both increased by 11 %, moving up$ 1,600 and$ 114, respectively.

The White House’s policy of starting trade was quickly shook markets in recent weeks as a result of U.S. President Donald Trump’s decision to delay raising tariffs on most most countries for 90 days.

Trump reduced the “reciprocal” tariff rate for 90 countries affected by his” Liberation Day” announcement to 10 %. Meanwhile, the president focused his trade war on one of the country’s biggest rivals and trading partners, raising tariffs on Chinese imports to 12 %.

Trump had just announced 25 % tariffs on imported cars and auto parts, which were put in place a week ago, and those levies were kept the same.

According to BRN analyst Valentin Fournier, who said the trade rally is motivated by hopes the conflict may not grow broader if negotiations with other nations prevail, the president’s trade maneuver gave markets a desperately needed dose of clarity.

He wrote in a Thursday note that” the possibility of continued negotiations could support a sustained uptrend.” The worst-case scenario of a trade war has been shelved, at least temporarily.

The Federal Reserve has recently been monitoring how Trump’s tariffs might affect its ability to combat inflation. In December, the U.S. central bank first raised concerns about the impact of Trump’s trade policy on price pressures.

Although the Fed’s 2 % target was still exceeded by Thursday’s inflation reading, it was the second consecutive month in which both CPI and its core measure both fell.

Editor’s note: Updated to include a David Hernandez comment.

edited by Stacy Elliott.