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Inflation in the US has fallen: how Bitcoin and the crypto market are reacting

On Wednesday, April 10, the U.S. Bureau of Labor Statistics released the long-awaited inflation figures for March.

By Mike Hesp
• 2 min read
Inflation in the US has fallen: how Bitcoin and the crypto market are reacting

On Wednesday, April 10, the U.S. Bureau of Labor Statistics released the long-awaited inflation figures for March. Inflation in the United States came in at 2.4% year over year. That figure is below the anticipated 2.5% and well under February's 2.8%.

Markets had already priced in a drop in inflation, but the actual numbers came in even more favorable than forecast. The lower inflation gives the Federal Reserve some room to adjust rates in the short term. The next rate decision from the Federal Reserve, led by Chair Jerome Powell, is on the calendar for May 6-7. They may discuss the first rate cut then.

Bitcoin reacted almost immediately to the inflation news with a sharp jump higher. The price rose to $81,700, a gain of seven percent from the previous day. Other major cryptos like Ethereum (ETH) and Ripple (XRP) also posted modest gains.

The price rise is partly attributed to the suspension of U.S. import tariffs for a 90-day period, announced by former President Donald Trump.

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