Bitcoin (BTC) price dips despite lower-than-expected US core CPI print

The latest US core Consumer Price Index (CPI) print, a measure of inflation, came in lower than expected at 3.1%, beating expectations of 3.2%

The latest core Consumer Price Index (CPI) print came in lower than expected at 3.1%, beating expectations of 3.2%, with a corresponding 0.1% drop in headline inflation figures.

According to Matt Mena, crypto research strategist at 21Shares, the cooling inflation data adds to the likelihood that the Federal Reserve will cut interest rates this year, injecting much-needed liquidity into the markets and sending risk-on asset prices higher. Mena added:

“The latest CPI figures have come in better than expected, which could put some downward pressure on Bitcoin in the short term. However, the long-term trend for Bitcoin remains bullish, driven by the continuing inflow of liquidity into the markets.”

Despite the better-than-expected inflation numbers, the price of Bitcoin (BTC) declined from over $84,000 at the daily open to now sit around $83,000 as traders grapple with US President Donald Trump’s trade war and macroeconomic uncertainty.

A majority of market participants believe the Federal Reserve will cut interest rates by June 2025. Source: CME Group

Related: Bitcoin’s ‘Trump trade’ is over—Traders shift hope to Fed rate cuts, expanding global liquidity

Is President Trump crashing markets to force rate cuts?

Federal Reserve Chairman Jerome Powell said on several occasions that the central bank is not rushing to cut interest rates—a view echoed by Federal Reserve Governor Christopher Waller.

During a Feb. 17 speech at the University of New South Wales in Syndey, Australia, Waller said the bank should pause interest rate cuts until inflation comes down.

These comments met with concern from market analysts, who say that a lack of rate cuts might trigger a bear market and send asset prices plummeting.

On March 10, market analyst and investor Anthony Pompliano specutlated that President Trump was intentionally crashing financial markets to force the Federal Reve to lower interest rates.

The U.S. government has approximately $9.2 trillion in debt that will mature in 2025 unless refinanced. Source: The Kobeissi Letter

According to The Kobeissi Letter, the U.S. government needs to refinance roughly $9.2 trillion in debt before it reaches maturity in 2025.

Failure to refinance this debt at lower interest rates will drive up the national debt, which is currently over $36 trillion, and cause the interest payments on the debt to balloon.

Due to these reasons, President Trump has made interest rate cuts a top priority for his administration—even at the short-term expense of asset markets and businesses.