Lower-than-expected March U.S. CPI (2.4%) follows Trump's tariff pause, boosting market optimism.

Slowing inflation triggers a significant rally in the cryptocurrency market, with Bitcoin exceeding $82,000.

Lower-than-expected March U.S. Consumer Price Index (CPI) data came in at 2.4%, just below the expected 2.5%, offering a fresh boost to market optimism.

This follows President Trump’s 90-day pause on tariffs, further buoying financial confidence.

The latest figures from the Bureau of Labor Statistics show that inflation fell by 0.1% in March 2025. In contrast, Wall Street experts had predicted a 0.1% increase.

This unexpected drop suggests inflation may finally be slowing down, a development that could have significant implications for the U.S. economy and investment strategies.

What It Means for Interest Rates and Investors

On a year-over-year basis, inflation has been steadily falling: from 3.0% in January to 2.8% in February, and now down to 2.4% in March. This ongoing decline is a sign that inflation is easing, which could lead to a more stable economy if the trend continues.

Since the Federal Reserve uses CPI data to guide interest rate decisions, the lower inflation number could be a positive signal for markets. If inflation stays under control, the central bank may hold off on raising rates—or even consider cuts.

That could mean lower borrowing costs and stronger investor confidence. However, uncertainty around Trump’s tariff policies still makes some investors cautious, especially larger institutions.

Core CPI Also Falls, Showing Broader Progress

Core CPI, which leaves out food and energy prices due to their volatility, also came in lower than expected—dropping to 2.8% instead of the forecasted 3%. This adds to the signs that inflation is cooling across the board, not just in isolated areas.

Crypto Market Reacts to CPI News

The crypto market responded quickly to the CPI report:

The strong reaction from crypto suggests that investors see falling inflation as a good sign for riskier assets. Whether this rally will continue remains to be seen, but for now, markets are clearly encouraged.

It’s not every day that Wall Street gets surprised and crypto throws a party – but today was one of those days.