Bitcoin Briefly Tops $84K on Inflation Report, But Momentum Quickly Fades

Bitcoin saw a short-lived spike above $84,000 following the release of U.S. inflation data, but the rally quickly lost strength, leaving the broader crypto market largely unchanged.

As of now, Bitcoin (BTC) is trading at $82,800, down 0.5% over the past 24 hours. The CoinDesk 20 Index, which tracks the top 20 cryptocurrencies excluding exchange tokens, stablecoins, and meme coins, has slipped 0.8% in the same period.

Ether (ETH) led the declines, dropping 3.5% to around $1,880, making it the worst performer in the index. The ETH/BTC ratio has fallen to 0.022, its lowest level since April 2020, before the DeFi boom that propelled projects like Uniswap and MakerDAO. The ratio has now plummeted 67% since peaking in November 2021.

“While today’s weaker-than-expected CPI report should be a bullish signal, crypto markets remain hesitant,” said Dr. Youwei Yang, Chief Economist at BIT Mining, in a note to CoinDesk. “It will take more than one favorable data point to restore investor confidence after weeks of risk-off sentiment.”

Yang also pointed to Trump’s tariff policies as a complicating factor, saying, “The combination of tariffs and economic uncertainty creates a dilemma for the Fed—rate cuts may be needed to support markets, but inflation risks could delay them.”

Investors currently anticipate Federal Reserve rate cuts as early as May or June, with as much as 100 basis points of easing possible by October.

Meanwhile, U.S. stocks rebounded modestly after recent sharp declines. The Nasdaq gained 1.2%, while the S&P 500 closed up 0.5%.