Crypto Rally Falters Following Mild Inflation Update
Temporary Reprieve Fades After Initial Spike in Crypto Assets
Bitcoin Sees Brief Surge Amidst Favorable Inflation Reports Before Stabilizing
Date: March 12, 2025, 8:32 p.m. UTC
The immediate impact of favorable U.S. inflation figures sent Bitcoin momentarily soaring past the $84,000 mark. Though, the broader cryptocurrency market saw limited movement overall as initial gains quickly dissipated.
Daily market Overview
As it stands now, Bitcoin is valued at approximately $82,800, marking a slight decline of about 0.5% over the last day. The broader measure known as the coindesk 20 — which accounts for major cryptocurrencies but excludes exchange-specific coins and stablecoins — experienced a similar downturn by around 0.8% within the same timeframe.
Ether (ETH), in particular faced harsher declines than its peers within this index pool, dropping about 3.5% to nearly $1,880 in value. Currently maintaining an ETH/BTC ratio of just .022—comparable to levels seen back in April of 2020 before decentralized finance (DeFi) projects like Uniswap and MakerDao gained significant traction—the ratio showcases a dramatic fall from its peak in November of 2021 by almost two-thirds.
Economic Signals and Market Responses
“Despite today’s CPI coming in lower than anticipated—a sign normally deemed encouraging since it could mean quicker monetary easing—the crypto markets seemed mostly unresponsive,” observed Dr. Youwei Yang from BIT Mining via email dialog. This sentiment illuminates that persistent market anxieties need more sustained positive triggers to recover confidence substantially.
Adding complexity to economic prospects are current tariff policies enforced by the administration; these have raised concerns about enduring high inflation levels alongside potential destabilization across financial markets—factors complicating any premature rate reductions by the Federal Reserve without risking further inflationary pressures according to Dr.Yang’s commentary.
With these ongoing economic challenges coupled with recent heavy job cuts initiated by certain government departments adding to tensions around fiscal policy decisions expected from federal authorities soon; speculations are circling around prospective rate cuts possibly begining as early as summer.
meanwhile U.S stocks saw some upwards motion; with Nasdaq climbing up by approximately 1.2% and S&P500 making modest gains at about .5%, following stark losses observed over recent weeks indicating some renewed albeit cautious investor optimism concerning equities amidst unfolding macroeconomic dynamics.
