Bitcoin (BTC) Price Climbed 7.4% in 24 Hours, Reclaiming $83,700 After Bottoming at $76,000

Bitcoin (BTC) price rose 7.4% in the last 24 hours, reclaiming ground above $83,700 after forming a local bottom at $76,000. Softer inflation data and easing

Bitcoin price surged 7.4% to trade above $83,700 on Wednesday, reclaiming a key resistance level after forming a local bottom at $76,000.

Early market signals from the latest U.S. Consumer Price Index (CPI) suggest Bitcoin’s upside momentum could persist as traders priced in a softer-than-expected inflation reading and good news on the geopolitical front.

Bitcoin price hit a high of $84,476 on Wednesday, with two major catalysts fueling the cryptocurrency’s latest rally.

Firstly, the latest CPI print from the U.S. Bureau of Labor Statistics (BLS) signaled that price pressures may be cooling down faster than anticipated. This bodes well for Bitcoin as it could factor into the Federal Reserve’s decision on pausing further interest rate hikes.

But while traders typically react to macroeconomic shifts quickly, shifting from one asset to another in large sums can take time. This is especially true for institutional investors who prefer to make measured moves based on long-term investment strategies.

After February’s CPI reading came in higher than expected, sparking a sell-off in crypto markets and stoking fears of a more hawkish Fed, investors pulled back from risky assets like Bitcoin and crypto to invest more in bonds and fixed income.

But with the latest data showing lower-than-expected inflation, traders are quickly rotating back into digital assets in anticipation of a less aggressive monetary policy stance.

What Is the STI Index Today and What Is It Signaling?

What Is the STI Index Today and What Is It Signaling?

The latest figures from the BLS showed that the U.S. CPI came in at 319.08 in February, a slight increase from January’s reading of 317.67. Economists polled by Dow Jones had expected a reading of 319.41.

On an annualized basis, the CPI rose by 2.8% in February, lower than January’s 3% and the economists’ estimates of 2.9%.

On a monthly basis, the CPI increased by just 0.2%, marking a slowdown from January’s 0.5% rise and lower than the expected 0.3%, according to TradingEconomics data.

Why Is Bitcoin Price Going Up?

Bitcoin’s latest rally can be attributed to three major factors:

* US CPI data sparks renewed risk appetite

* Optimism builds as reports of Russia, Ukraine ceasefire emerge

* Crypto market traders’ emerging optimism reflected in derivatives data

1. US CPI Data Sparks Renewed Risk Appetite

The U.S. Bureau of Labor Statistics (BLS) reported on Wednesday that the U.S. Consumer Price Index (CPI) came in lower than expected in February.

The data showed that the CPI, which measures a basket of goods and services sold to consumers, rose by 0.2% in February from January, after economists polled by Dow Jones had expected a 0.3% increase.

The report also showed that the annual rate of inflation, measured by the year-over-year change in the CPI, slowed to 2.8% in February from 3% in January, and coming in lower than economists’ expectations for a 2.9% reading.

The report also showed that the so-called core CPI, which excludes volatile food and energy prices, increased by 0.2% in February from January, in line with economists’ expectations. The core CPI rose by 2.4% year-over-year in February, also in line with economists’ expectations.

The latest CPI data signals that price pressures may be cooling down faster than anticipated. This finding could influence the Federal Reserve’s upcoming decisions on interest rates.

With the Fed having already delivered 500 basis points of rate hikes since the beginning of 2022, investors are keenly watching for any signs of a pivot in the central bank’s policy.

After February’s CPI print came in higher than expected, sparking a sell-off in crypto markets and fueling fears of a more hawkish Fed, investors pulled back from risky assets like Bitcoin and cryptocurrency to invest more in bonds and fixed income.

But with the latest data showing lower-than-expected inflation and traders quickly rotating their positions, we saw some optimism return to crypto markets.

2. Softer Inflation Fuels Bitcoin Price Gains as Payoff to Calculus Shapes Next Move

Bitcoin price rebounded on Wednesday, extending gains from the previous session as softer-than-expected U.S. inflation data sparked a broader risk-on mood among traders.

Bitcoin rose as high as $84,476 on Wednesday, reaching levels not seen since March 1. This brought BTC price on the verge of key resistance at the $84,500-$85,000 zone, where sellers are anticipated to exert pressure.

The cryptocurrency was up around