CPI Data Sparks a Fed Pivot Rally: Bitcoin Soars Past $87,000
Hold onto your hats! A major macroeconomic shift just injected rocket fuel into crypto markets. The latest U.S. Consumer Price Index (CPI) data came in shockingly low, triggering an immediate and powerful Bitcoin rally. This bullish CPI data print is a game-changer, as it dramatically strengthens the case for more aggressive Federal Reserve rate cuts in 2025.
Breaking Down the Bullish CPI Data Shock
The numbers tell the story. Headline inflation cooled to 2.7% year-over-year, decisively beating estimates of 3%. Even more critically, Core CPI fell to 2.6%, marking its lowest level since March 2021. This data signals that the Fed’s fight against inflation is winning, freeing it to shift focus to supporting the economy.
Bitcoin reacted within seconds, surging from around $86,000 to over $88,000. This move underscores crypto’s growing sensitivity to traditional macro signals. The rally reflects a market repricing the odds of cheaper money and a more favorable liquidity environment ahead.
The Road to Faster, Deeper Rate Cuts
This soft inflation print, combined with recently weaker jobs data, builds a compelling argument for the Fed to act. Notably, voices calling for cuts are growing louder. Fed Governor Chris Waller stated he sees no inflation re-acceleration, while market analyst Anthony Pompliano argued for an immediate 50-basis-point cut.
Furthermore, political pressure is mounting. President Trump has openly called for rates to fall to 1% and is poised to appoint a Fed chair who supports easier policy. This macro backdrop creates a near-perfect storm for risk assets like Bitcoin.
My Thoughts
This isn’t just a one-day bounce. This CPI data is the fundamental confirmation the market needed to price in a genuine Fed pivot. For Bitcoin, lower real yields and increased liquidity are jet fuel. The path toward $100,000+ just got clearer. While short-term volatility remains, the macro headwind has now become a tailwind. This is the signal to pay attention to.
