U.S. CPI data strengthens expectations of a Fed rate cut this year, pushing Bitcoin back above $80,00.

On Thursday, CPI data boosted the crypto market, and Bitcoin (BTC) continued its rebound. Over the past 24 hours, Bitcoin rose nearly 1%, reaching $83,566.

The crypto market saw gains on Thursday, as Consumer Price Index (CPI) data strengthened expectations of a Fed rate cut this year, pushing Bitcoin back above $83,000.

Bitcoin rose nearly 1% over the past 24 hours, trading above the $83,500 level. In the short term, BTC faces resistance at the $90,000 level.

Bitcoin Price Chart, Source: TradingView

The latest U.S. CPI data for February came in lower than market expectations, increasing anticipations for a Fed rate reduction this year. The figures revealed a 2.8% increase in the annual CPI rate, compared to the anticipated 2.9%, while the overall CPI also experienced a decline of 0.1%.

Earlier, Federal Reserve Chair Jerome Powell and Governor Christopher Waller, among other officials, collectively mentioned that they were not in a hurry to cut rates. However, inflation data and potential pressure from the Trump administration might force their hand.

Market analyst Anthony Pompliano hinted at the possibility of the Trump administration aiming to create market volatility in order to pressure the Fed into reducing rates. Furthermore, crypto research strategist at 21Shares, Matt Mena, observed, “A decline in inflation could lead to a faster pace of rate cuts by the Fed, which typically provides more liquidity to the market, thereby boosting the prices of Bitcoin and other risk assets.”

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