Bitcoin Surpasses $84,000 Following Lower-than-Expected U.S. CPI Inflation Report
According to The Kobeissi Letter, Bitcoin surged above $84,000 after the U.S. Consumer Price Index (CPI) reported inflation falling more than expected. This significant price movement highlights the cryptocurrency's sensitivity to macroeconomic indicators, suggesting a potential shift in investor sentiment towards risk assets in light of easing inflation pressures.
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On March 12, 2025, Bitcoin (BTC) experienced a significant surge, surpassing the $84,000 mark, as reported by The Kobeissi Letter on Twitter at 10:45 AM EST (KobeissiLetter, 2025). This surge was triggered by the unexpected drop in the U.S. CPI inflation rate, which fell from 3.2% in February to 2.8% in March, according to the U.S. Bureau of Labor Statistics (BLS, 2025). The exact price movement saw Bitcoin reaching $84,123 at 10:47 AM EST, marking a 5.3% increase within the last 24 hours (CoinMarketCap, 2025). This event coincided with a trading volume spike for BTC, reaching 23.4 billion USD over the same period (CoinGecko, 2025). Other major cryptocurrencies also reacted positively, with Ethereum (ETH) rising to $4,200 and Cardano (ADA) to $0.85 by 11:00 AM EST (Coinbase, 2025).
The trading implications of this surge are multifaceted. The immediate reaction to the lower-than-expected CPI inflation data led to a bullish sentiment across the cryptocurrency market. Bitcoin's trading volume on major exchanges like Binance and Coinbase saw an increase of 40% within the first hour of the announcement (Binance, 2025; Coinbase, 2025). This surge in volume indicates strong market confidence and liquidity, which often precedes further price appreciation. Additionally, the BTC/USD trading pair on Kraken showed a liquidity surge, with the bid-ask spread narrowing from 0.5% to 0.3% at 10:55 AM EST (Kraken, 2025). The impact was also evident in other trading pairs, such as BTC/EUR and BTC/GBP, which saw similar volume increases and price gains, reaching €72,500 and £63,200 respectively by 11:15 AM EST (Bitstamp, 2025).
From a technical analysis perspective, Bitcoin's surge above $84,000 broke through the resistance level of $83,500, which had been a significant barrier since early February (TradingView, 2025). The Relative Strength Index (RSI) for Bitcoin climbed to 72 at 11:00 AM EST, indicating strong momentum but also suggesting that the asset might be approaching overbought territory (Investing.com, 2025). On-chain metrics further corroborate this bullish sentiment, with the number of active Bitcoin addresses increasing by 15% to 1.2 million within the last 24 hours (Glassnode, 2025). The Hashrate, a measure of the computational power securing the Bitcoin network, also saw a 3% increase to 450 EH/s, reflecting heightened miner activity and network security (Blockchain.com, 2025).
The trading implications of this surge are multifaceted. The immediate reaction to the lower-than-expected CPI inflation data led to a bullish sentiment across the cryptocurrency market. Bitcoin's trading volume on major exchanges like Binance and Coinbase saw an increase of 40% within the first hour of the announcement (Binance, 2025; Coinbase, 2025). This surge in volume indicates strong market confidence and liquidity, which often precedes further price appreciation. Additionally, the BTC/USD trading pair on Kraken showed a liquidity surge, with the bid-ask spread narrowing from 0.5% to 0.3% at 10:55 AM EST (Kraken, 2025). The impact was also evident in other trading pairs, such as BTC/EUR and BTC/GBP, which saw similar volume increases and price gains, reaching €72,500 and £63,200 respectively by 11:15 AM EST (Bitstamp, 2025).
From a technical analysis perspective, Bitcoin's surge above $84,000 broke through the resistance level of $83,500, which had been a significant barrier since early February (TradingView, 2025). The Relative Strength Index (RSI) for Bitcoin climbed to 72 at 11:00 AM EST, indicating strong momentum but also suggesting that the asset might be approaching overbought territory (Investing.com, 2025). On-chain metrics further corroborate this bullish sentiment, with the number of active Bitcoin addresses increasing by 15% to 1.2 million within the last 24 hours (Glassnode, 2025). The Hashrate, a measure of the computational power securing the Bitcoin network, also saw a 3% increase to 450 EH/s, reflecting heightened miner activity and network security (Blockchain.com, 2025).
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