Bitcoin’s (BTC-USD) price saw a modest increase of 1% on Thursday, to trade around $83,700 (£64,597). This uptick comes amid easing US inflation rates and renewed interest from institutional investors in spot bitcoin exchange-traded funds (ETFs).
However, the gains come against a backdrop of escalating global trade tensions, with US president Dobald Trump’s new tariff policies adding uncertainty to the broader economic outlook.
In early trading on Thursday, Bitcoin (BTC-USD) was holding firm at $83,700 (£64,697), with intraday swings between a low of $80,625 and a high of $84,302, according to CoinGecko data.
In February, the US Consumer Price Index (CPI) for both headline and core inflation rose by 0.2%, coming in slightly below Wall Street expectations and the previous month’s figures. This lower-than-expected inflation print has eased concerns among consumers and businesses already bracing for the potential inflationary effects of new tariffs.
It has also strengthened market expectations that the Federal Reserve may cut interest rates sooner than previously anticipated. Monetary easing tends to benefit risk assets like bitcoin by increasing liquidity in the financial system and making fixed-income investments less attractive to investors.
BRN analyst Valentin Fournier said: “This lower-than-expected inflation print strengthens the case for multiple rate cuts, as investors now price in an 82% chance of three cuts by December — a major potential liquidity boost for risk assets, including crypto.”