U.S. March CPI Rises Sharply, Bitcoin Price Does Not Significantly Surge

As the situation of the U.S.-Iran war continues to ferment, market concerns over U.S. inflation trends are intensifying. Experts previously predicted that, affected by the war, the U.S. Consumer Price Index (CPI) would experience a significant spike.

Meanwhile, the highly anticipated March CPI data was officially released last night. This is the first full month of inflation data since the outbreak of the U.S.-Iran war, and the results closely align with market expectations, showing a notable increase in U.S. inflation.

Looking back at previous inflation performance, U.S. inflation data for February generally met market expectations, rising 2.4% year-over-year and 0.3% month-over-month. At that time, the data had not yet been significantly affected by the U.S.-Iran war, and inflation trends remained relatively stable;
But after entering March, inflation dynamics changed markedly. The data released last night showed that the CPI's month-end increase expanded sharply to 0.9%, far exceeding February's performance;

The actual March core CPI (year-over-year) was 2.6%, not the market forecast of 2.7%, indicating that core inflation remains relatively controllable.

Market analysis suggests that, influenced by the U.S.-Iran war, the main driver behind the sharp rise in CPI is the energy sector, due to a significant surge in fuel costs, which contributed the most to the monthly CPI increase and became a key factor in driving inflation higher.

Before the March CPI data was released, Bitcoin prices remained stable, around $72,000; after the data was officially announced, prices immediately fluctuated but did not experience a significant decline, currently trading above $72,500.

This market behavior is also consistent with earlier statements by Federal Reserve Chair Jerome Powell. Powell stated that, until further cooling of inflation is observed, the Fed is unlikely to cut interest rates in the coming months, a sentiment that the market has already anticipated, thereby also influencing Bitcoin's price trend.

#CPI