WASHINGTON (dpa-AFX) - A softer-than-expected inflation update from the U.S. Bureau of Labor Statistics for the month of February failed to boost crypto market sentiment meaningfully. Latest data revealed a larger than expected decline in both consumer price inflation and producer price inflation. While Bitcoin rose to $84.4k and overall crypto market capitalization touched $2.72 trillion, it has since reverted to the levels prevailing prior to the data release.
Data released on Wednesday morning had showed headline annual inflation edging down to 2.8 percent in February from 3 percent in January and surpassing market expectations of a decline to 2.9 percent. The core component thereof which was seen declining to 3.2 percent from 3.3 percent in January actually recorded a level of 3.1 percent.
Inflation on a month-on-month basis dropped to 0.2 percent. It was seen declining to 0.3 percent from 0.5 percent in January. The core inflation component which was expected to edge down to 0.3 percent in February from 0.4 percent in January declined more than expected to 0.2 percent.
Even though inflation data revealed an increase in the headroom available to the Federal Reserve to ease rates, there appears to be no increase in expectations of an immediate cut by the Fed. The CME FedWatch tool that tracks the expectations of interest rate traders shows a 99 percent likelihood of a hold by the Fed in March. It was 98 percent a day earlier. The looming uncertainty on tariffs and the escalation in trade war, the effects of which are yet to be reflected in price pressures in the economy have kept immediate rate cut expectations rather low.
Nevertheless, expectations for the year-end reveal a 12.6 percent probability of rates falling by 0.25 percent, a 29.1 percent probability of rates falling by 0.50 percent, a 32.1 percent probability of rates falling by 0.75 percent, an 18.3 percent probability of rates falling by 1 percent, and a 5.2 percent probability of rates falling by 1.25 percent.
The easing in producer price inflation has also not materially altered market's rate cut expectations. Data released just a while ago showed producer prices in the U.S. were unchanged in February from the levels in January. This compares with the upwardly revised 0.6 percent rise in the previous period and below forecasts of a 0.3 percent gain. It is also the lowest rate in seven months.
Bitcoin (BTC) that dominates 60.9 percent of the overall crypto market shed more than 1.3 percent overnight to trade at $82,598.64. It is currently trading 24 percent below the all-time-high at $109,114.88 recorded on January 20. The original cryptocurrency traded between $84,358.58 and $80,635.25 during the past 24 hours. Amidst weekly losses of 8.6 percent, the leading cryptocurrency is trading with losses of 15.5 percent over the 30-day horizon and 11.6 percent on a year-to-date basis.
Ethereum has shed 0.83 percent overnight to trade at $1,902.96. The leading alternate coin has recorded weekly losses of 16.2 percent, losses of 29.3 percent over the past 30 days and an erosion of 42.9 percent till date in 2025. Ether's current trading price is 61 percent below its all-time-high. The most valued alternate coin that dominates 8.45 percent of the overall crypto market ranged between $1,943.24 and $1,832.02 in the past 24 hours.
4th ranked XRP (XRP) gained 3.7 percent overnight to trade at $2.31, around 40 percent below the all-time high touched in January 2018. The cryptocurrency has however surged 11.3 percent till date in 2025.
5th ranked BNB (BNB) surged 6.3 percent overnight at its current trading price of $596.18. BNB is currently trading 25 percent below the all-time high touched on December 4, 2024. Amidst losses that exceed 7 percent over the 30-day horizon, the cryptocurrency has lost more than 15 percent till date in 2025.
The price of 6th ranked Solana (SOL) dropped 1.5 percent overnight. With weekly losses of 14.8 percent, SOL is currently trading at $126.67, around 57 percent below its record high on November 23, 2024.
8th ranked Cardano (ADA) lost 3.6 percent overnight and 21.7 percent in the past week to trade at $0.7283. ADA is currently trading 77 percent below the record high touched in September 2021.
9th ranked Dogecoin (DOGE) slipped 0.9 percent overnight to trade at $0.1696. Having lost more than 18 percent in the past week, DOGE is trading 77 percent below the previous peak scaled in May 2021.
10th ranked TRON (TRX) gained 1.4 percent overnight to trade at $0.2259. TRX has slipped 6.3 percent in the past week. The trading price is 49 percent below the cryptocurrency's all-time high recorded on December 4, 2024.
For More Cryptocurrency News, visit rttnews.com
Copyright(c) 2025 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2025 AFX News
