A whisper of optimism swept through the crypto market today as fresh inflation data painted a softer economic landscape

The U.S. Consumer Price Index nudged down to 0.2% in February, from January's 0.3%. Yearly inflation figures also showed a pleasant surprise

A whisper of optimism swept through the crypto market today as fresh inflation data painted a softer economic landscape.

The U.S. Consumer Price Index (CPI) for February came in lower than expected, edging down to 0.2% from the previous month’s 0.3% rise. Economists polled by Dow Jones had anticipated a slight increase to 0.3%.

Compared to February 2022, the CPI showed a yearly inflation rate of 2.8%, surprising market anticipations of 2.9%. Core inflation, which excludes volatile food and energy costs, also dropped to 3.1%, marking a multi-year low and beating the anticipated 3.2%.

These statistics, signaling some stability in global markets, were met with positivity. However, the mood was tempered by a 15% dip in intraday trading volumes, suggesting traders’ caution despite the positive inflation news.

The Fear & Greed Index also dipped to 21, hinting at underlying jitters.

Crypto Market Surprises with Latest Inflation Data

The recent inflation data sparked immediate responses in the crypto market.

The global crypto market cap rose by 2.14%, now standing at $2.7 trillion. Bitcoin price today edged up slightly, trading above the $83,000 mark. The world’s largest cryptocurrency gained 1.68% in the past 24 hours.

Bitcoin's market cap now stands at $1.65 trillion, commanding 61% of the market share. However, trading volumes slipped by over 21%.

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Among major altcoins, Ethereum experienced a slight retreat, sliding 0.39%. On the other hand, Ripple's XRP leaped 2.90% amid discussions regarding an ETF filing by Franklin Templeton. Solana also showed resilience with a slight rise of 0.79%.

Within this financial theater, certain altcoins stole the spotlight. Pi Coin surged by an impressive 15.17%, claiming the throne of today's top gainer. Meanwhile, Story IP and TIA carved out strong performances, escalating by 11.89% and 13.40% respectively.

Conversely, some coins like HYPE, TAO, and FLR faced declines, particularly HYPE with a 5.72% decrease.

The crypto market is often swayed by investor sentiment. The Fear & Greed Index dipped to 21, highlighting a cautious mood despite positive economic news.