Bitcoin surges amid hopeful signals from US inflation data
In a dramatic twist that has traders buzzing, Bitcoin is setting its sights on a stunning $146,000 mark. The catalyst? The latest US Consumer Price Index (CPI) report, which has sent ripples through financial markets by dramatically increasing the probability of a Federal Reserve interest rate cut to 94%. This unexpected shift has reignited optimism among crypto investors, who view a rate cut as a green light for risk assets like Bitcoin to soar.
Inflation data fuels renewed confidence in crypto market
The August 12, 2025 CPI print revealed softer inflation pressures than anticipated, suggesting that the Fed might ease its aggressive monetary tightening sooner than expected. This potential pivot from higher rates to easing has energized Bitcoin traders, who have long been sensitive to interest rate movements. The prospect of cheaper borrowing costs and a more accommodative policy environment could unleash fresh capital flows into cryptocurrencies, pushing Bitcoin closer to its all-time highs. Market analysts are watching closely as the Fed’s stance evolves, noting that Bitcoin’s trajectory often mirrors shifts in macroeconomic policy and investor sentiment.
