Wednesday’s Consumer Price Index report has provided much-needed respite to US stocks and the crypto market.
The headline CPI dropped to 2.8% year-over-year, below the expected 2.9%, while core CPI came in at 3.1%, missing the 3.2% forecast.
This marks the first time since July 2024 that both metrics have softened more than expected, suggesting that the “sticky” inflation in the US economy could finally be easing.
The February CPI has significantly increased the odds of multiple interest rate cuts in 2025, an extremely bullish scenario for risk assets. The bullish thesis that Bitcoin and altcoin prices will mark their local bottom in the first quarter and explode in Q2 now seems extremely likely.
February’s CPI report is putting the stagnation fears to bed, at least for the time being.
Inflation in the US economy is dwindling, even though it still is well above the Federal Reserve’s 2% target.
🚨 Just In: February US CPI annual inflation rises 2.8%, below expectations of 2.9%.Core CPI inflation increased 3.1% Y/Y, below forecasts for a gain of 3.2%. pic.twitter.com/qiaAZzCmfy
— Jesse Cohen (@JesseCohenInv) March 12, 2025
US equities saw an immediate bounce on the soft inflation data, as did Bitcoin, which rallied to $84,000 before a sell-off.
Following major economic data releases, the second market move is often a trap, while the initial reaction tends to be more reliable over the long term, as it better reflects investors’ true sentiment.
Donald Trump’s volatile tariff policy is also contributing to the uncertainty. Just today, Canada imposed 25% retaliatory tariffs on nearly 25% of US imports.
However, White House economic advisor Kevin Hassett recently suggested significant clarity on Trump’s trade policy by April, which aligns with the bullish Q2 thesis.
More importantly, the soft CPI report has increased the odds of multiple Fed rate cuts in 2025. Interest rate traders now have a base case of at least three rate cuts in 2025, data from CME FedWatch reveals.
This is undoubtedly an extremely bullish scenario for Bitcoin and major altcoin prices.
As such, GMI’s Head of Macro Research Julien Bittel recently highlighted that the global M2 money supply is soaring and financial conditions are rapidly easing. The Fed rate cuts would further reinforce their trajectories, paving the way for an explosive rally in Q2.
There is now a growing consensus that the Bitcoin price will likely mark its bottom between the $72k – $74k zone. It could also simply bounce back following a retest of its 50-week SMA, which is currently hovering near $75k.
Either way, whales are already buying the dip and so should the small-scale sidelined investors.
🚨Whales keep buying.Bitcoin whales added 65,000 BTC in the last 30 days, Despite the market correction.🔥 pic.twitter.com/tDdTw5MpE4
— Kashif Raza (@simplykashif) March 12, 2025
Bitcoin is still the king and the top pick among experts for the best crypto to buy now. While there is significant uncertainty surrounding altcoins, experts believe that the Bitcoin price will likely bottom at $75k and peak at $150k in 2025, offering a clean 2x opportunity.
In fact, even Bitcoin-themed altcoins are in high demand. For instance, a new meme coin, BTC Bull (BTCBULL), has caught the attention of smart money investors and retailers alike.
BTCBULL has raised nearly $4 million in its ICO in short order, thanks to its promise of free Bitcoin.
Unlike most meme coins, BTC Bull has managed to showcase its long-term viability. It is built upon the principle that Bitcoin is highly undervalued at its current price and should hit $250k in the near future.
As a result, BTCBULL holders will receive free BTC and BTCBULL airdrops while also benefitting from regular token burn events every time the Bitcoin price hits certain set milestones.
For instance, there is already a BTCBULL burn event scheduled at $125k and a Bitcoin airdrop at $150k, two milestones that will likely be triggered immediately if Trump’s Strategic Bitcoin Reserve receives congressional funding.
Considering that Bitcoin-themed meme coins are extremely rare, investors believe that the BTC Bull meme coin is undervalued in the presale. Many are even calling it the next 100x crypto.
Disclaimer: This is a sponsored article and is for informational purposes only. It does not reflect the views of Crypto Daily, nor is it intended to be used as legal, tax, investment, or financial advice.
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