Crypto Market Stalls as Inflation Data Eases Investor Jitters

The cryptocurrency market remained flat on Wednesday as lower-than-expected US inflation data eased some investor concerns.

Bitcoin (BTC) recorded a 0.2% gain in the past 24 hours, climbing to approximately $82,500 after a turbulent week. Meanwhile, Ethereum (ETH) dropped 3% to $1,875, XRP rose 3% to $2.22, and Solana (SOL) slipped 1% to $125, according to CoinGecko.

The broader cryptocurrency market experienced a 0.4% decrease in total market capitalization, dropping to $2.77 trillion.

During the same period, 107,395 traders were liquidated, with total liquidations amounting to $382 million, according to CoinGlass data. Bitcoin (BTC) accounted for the majority of liquidations at $192 million. This was followed by Ethereum (ETH) with $72 million, while altcoins recorded $23 million in liquidations.

Experts attributed today's market stagnation to lower-than-expected inflation figures, which provided a slight boost to investor sentiment despite ongoing concerns over tariffs and regulatory uncertainty.

Inflation Cools

Early Wednesday, the Consumer Price Index (CPI), which analyzes the cost of goods and services across the US economy, rose by 0.2% in February, coming in slightly below expectations.

On an annual basis, headline inflation stood at 2.8%, while core inflation was at 3.1%, both 0.1 percentage points lower than Wall Street estimates and January’s figures.

“Today’s CPI report shows inflation is declining and the economy is moving in the right direction under President Trump,” Karoline Leavitt, White House press secretary, said in a statement.

Vijay Pravin, the founder and CEO of bitsCrunch, told The Defiant today’s CPI release illustrates that inflation has eased slightly but is still too high.

“This week, President Trump said he couldn’t rule out a recession, which dampened market sentiment in general,” Pravin said. “While Bitcoin reclaimed $83,000 yesterday, it has retraced to $81,000 in the immediate aftermath of the CPI data release.”

He also emphasized the need to consider the Federal Reserve's upcoming decision, as persistent inflationary pressures complicate its approach to rate cuts. “Ultimately, cutting prematurely could reignite price instability and negatively impact the broader crypto market,” Pravin said.