The latest inflation data from the U.S. Bureau of Labor Statistics showed that consumer prices continued to rise in March, while Bitcoin climbed above $72,000 following the release.
Summary
U.S. CPI rose 3.3% year-over-year in March, driven largely by surging energy costs.
Bitcoin moved above $72K despite persistent inflation pressures.
Markets see a 98.4% chance that the Federal Reserve will keep rates unchanged in April.
Inflation driven by energy surge
According to the report, headline CPI increased 0.9% month-over-month in March, marking a sharp rise compared to February’s 0.3% gain. On an annual basis, inflation came in at 3.3%, remaining above the Federal Reserve’s 2% target.
The increase was primarily fueled by energy prices. The energy index jumped nearly 11% خلال the month, while gasoline prices surged 21.2%, making fuel the biggest contributor to inflationary pressure.
March also reflected the first full impact of geopolitical tensions, particularly the US-Iran conflict, which has driven volatility in global energy markets.
Core inflation offers slight relief
While headline inflation accelerated, core CPI—which excludes food and energy—rose 2.6% year-over-year, slightly below expectations of 2.7%. This suggests that underlying inflation remains relatively stable despite the spike in energy costs.
Fed outlook remains cautious
The data reinforces expectations that the Federal Reserve will maintain a cautious stance. With inflation still above target, policymakers are unlikely to ease monetary policy soon.
According to CME Group’s FedWatch tool, markets are pricing in a 98.4% probability that the Fed will hold interest rates steady at its upcoming April meeting. Officials have also indicated that further tightening remains a possibility if inflation persists.
Bitcoin rallies despite inflation pressure
Despite the hotter-than-target inflation reading, Bitcoin moved higher following the data release. The cryptocurrency briefly touched $73,000 before stabilizing above $72,000.
At the time of writing, Bitcoin was trading around $72,780, posting a 1% gain over the past 24 hours and a 9% increase over the past week.
