BTC Price Jumps Above $84k, A Sign Of Rebound?
Bitcoin (BTC) 's price spiked past $84,000 on Wednesday, sparking speculation in the crypto market about whether it is a sign of a rebound or just another volatile move.
The Bitcoin market experienced weeks of back-and-forth price movement in an attempt to stabilize. These fluctuations were driven largely by institutional demand, macroeconomic trends, and investors’ renewed interest.
What Is Driving BTC Surge?
Wednesday morning’s U.S. Bureau of Labor Statistics report revealed a 0.2% increase in the Consumer Price Index (CPI) for February. This translates to a year-over-year inflation rate of 2.8% in the world’s largest economy, down from January’s 3%. The projected rate had been 2.9%.
U.S. CPI: +2.8% YEAR-OVER-YEAR (EST. +2.9%)
U.S. CORE CPI: +3.1% YEAR-OVER-YEAR (EST. +3.2%)
Moreover, this positive news spurred a surge in Bitcoin (BTC), pushing its price above $84,000 shortly after the announcement. The CPI, a key inflation indicator closely watched by the Federal Reserve, is now closer to the central bank’s target of 2% inflation, considered a healthy economic zone.
The Fed lowered the benchmark three times in 2024 but has yet to do so in 2025. Several months ago, the central bank projected two rate cuts this year that could drop the figure to a range of 3.75% to 4.00%. Reducing the percentage makes money-borrowing easier and might increase the interest in riskier assets such as BTC.
With inflation lower than expected, this could be a bullish sign for crypto market as there is the possibility that the Federal Reserve could adopt a milder stance on interest rates.
BTC Price Gains Momentum
In the past 24 hours the Trading volume for BTC have recoiled by 17.2% as the market cools off after a few days of heavy selling. Investors are still in an “Extreme Fear” mode despite the current market position.
In volatile markets such as this, trends can change very quickly. Yesterday, in just 24 hours over $800 million worth of long positions were liquidated. Could this be the market’s lowest level? It is still too early to tell but momentum indicators are improving, and the Relative Strength Index (RSI) just sent a buy signal.
Furthermore, to fully reverse the downtrend, BTC would have to break above the $91,000 level in the next few days. The report shows that the Trading volumes were still slightly below average yesterday as the price bounced; this could be a sign that its recovery could be short-lived.
