Crypto Market Reacts Mildly to Soft Inflation Data: Bitcoin Dips Below $83,000

On Wednesday, February's softer-than-expected U.S. inflation data from the Bureau of Labor Statistics initially boosted Bitcoin to $84.4k and the overall crypto market cap to $2.72 trillion. However, these gains were short-lived, with Bitcoin later dropping to $82,598.64, a 1.3% overnight decrease. This price is 24% below its all-time high. Annual inflation edged down to 2.8%, below the expected 2.9%, while core inflation fell to 3.1%. Producer prices remained unchanged in February, below the forecasted 0.3% gain. Despite the positive inflation data, expectations for an immediate rate cut by the Federal Reserve remain low, with a 99% likelihood of a hold in March. Ethereum fell 0.83% to $1,902.96, while XRP surged 3.7% to $2.31. BNB increased by 6.3% to $596.18, while Solana dropped 1.5% to $126.67. Cardano and Dogecoin also saw overnight losses.