Key Takeaways

• U.S. inflation rose less than expected in February, increasing the likelihood of Federal Reserve rate cuts in the coming months.

• Bitcoin jumped past $84,000 following the report, recovering from weeks of market pressure.

Yello, Paradisers! For weeks, investors have been stuck in limbo, watching inflation remain stubbornly high while the Federal Reserve hesitated on rate cuts. But today’s CPI report just changed the game.

Inflation came in softer than expected, with headline CPI rising just 0.2% in February, lower than the forecasted 0.3% and well below January’s 0.5% jump. Core CPI (which excludes food and energy) followed a similar pattern, slowing to 3.1% year-over-year instead of the expected 3.2%.

That’s exactly the kind of cooling inflation the market needed to see to put Fed rate cuts back on the agenda.

Bitcoin Reacts—Is This the Start of the Next Leg Up?

Bitcoin immediately surged past $84,000 after the report, gaining over 1% in minutes.

This isn’t just about inflation, it’s about the Fed’s next move.

Prior to today’s report, interest rate traders were pricing in a 40% chance of a rate cut in May and an 85% chance of one or more cuts by June. If inflation continues to cool, those odds could climb even higher—bringing back liquidity and risk appetite for crypto and equities.

What’s Next? All Eyes on PPI

Tomorrow’s Producer Price Index (PPI) report will be critical. If it confirms today’s CPI slowdown, the market could fully price in Fed cuts, fueling a stronger Bitcoin breakout.

But if PPI comes in hot? Expect volatility as traders reassess.

MCP’s Take—How to Trade This Move

This CPI report is a clear signal that the inflation battle is turning, but the real question is how the Fed will react.

• Will rate cut expectations increase, pushing Bitcoin even higher?

• Could a strong PPI print kill the rally before it truly begins?

• How should traders position before the next big market shift?

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When the market shifts, there’s no time to hesitate. Are you positioned for what’s coming next?