U.S. March CPI Rises Significantly, Bitcoin Price Does Not Surge

As the situation of the U.S.-Iran war continues to ferment, market concerns about U.S. inflation trends are intensifying. Experts previously predicted that, affected by the war, the U.S. Consumer Price Index (CPI) would experience a sharp surge.

Meanwhile, the highly anticipated March CPI data was officially released last night. This is the first full-month inflation data since the outbreak of the U.S.-Iran war, and the results are highly consistent with market expectations, with U.S. inflation rate showing a significant increase.

Looking back at previous inflation performance, U.S. inflation data for February generally met market expectations, rising 2.4% year-on-year and 0.3% month-on-month. At that time, the data had not yet been significantly affected by the U.S.-Iran war, and inflation trends were relatively stable;
but after entering March, inflation dynamics changed markedly. The data released last night showed that the monthly CPI increased sharply to 0.9%, far exceeding February’s market performance;

The actual March core CPI (year-on-year) was 2.6%, not the market forecast of 2.7%, indicating that core inflation remains relatively controllable.

Market analysis suggests that, influenced by the U.S.-Iran war, the main driver behind the sharp rise in CPI is the energy sector, due to a significant surge in fuel costs, which contributed the most to the monthly CPI increase and became a key factor in driving inflation higher.

Before the March CPI data was released, Bitcoin prices remained stable, around $72,000; after the data was officially announced, prices immediately fluctuated but did not experience a significant decline, and are still trading above $72,500.

This market behavior is also consistent with the previous statements by Federal Reserve Chair Jerome Powell. Powell stated that, until further signs of inflation cooling are observed, the Federal Reserve is unlikely to cut interest rates in the coming months, a consensus expectation that has also influenced Bitcoin’s price movement.

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