The U.S. inflation data for March came in below expectations, sparking a sharp rise in the cryptocurrency market.
The annual Consumer Price Index (CPI) dropped to 2.4%, lower than the anticipated 2.5%. This lower-than-expected reading caused the U.S. Dollar Index (DXY) to decline, pushing investors toward risk assets like Bitcoin (BTC) and Ethereum (ETH).
Before the data release, Bitcoin was trading around 81,500 dollars, but quickly surged to 82,500 dollars after the announcement. Ethereum followed a similar pattern, climbing from 1,588 to 1,618 dollars. Meanwhile, the DXY dropped from 101.9 to 101.4, indicating reduced demand for the dollar.
The weaker inflation print also strengthened expectations that the Federal Reserve may continue cutting interest rates, placing the upcoming May 7 Fed meeting under the spotlight.
