Crypto Markets Consolidate as CPI Cools and Trump Pauses Tariffs

Crypto markets recorded mild gains on Thursday following positive macroeconomic data and President Donald Trump’s announcement of a 90-day pause on tariffs.

Bitcoin (BTC) is up 4% over the past 24 hours to around $80,300, while Ethereum (ETH) increased 3% to $1,530. XRP surged 7% to $197, and Solana (SOL) edged 4.5% to $111.

Fartcoin stood out as an outlier among memecoins, surging 27% over the past day and 92% over the past week. Meanwhile, the broader cryptocurrency market capitalization climbed 2% to $2.64 trillion, according to CoinGecko.

Leveraged liquidations came in at around $513 million across 143,836 traders over the last day. BTC led with $165 million, and ETH followed with $153 million. The largest single liquidation order happened on Binance and was valued at $11.85 million, according to CoinGlass.

In the exchange-traded fund (ETF) space, U.S. BTC spot ETFs recorded $127 million in outflows, while ETH ETFs experienced $11 million in outflows, per SoSoValue data.

Experts attribute the surge to better-than-expected Consumer Price Index (CPI) data, which was released earlier today, as well as Trump’s decision to pause tariffs for 90 days.

“The softer-than-expected inflation print is being interpreted as bullish across risk assets,” said Dr Kirill Kretov, Senior Automation Expert at CoinPanel. “Lower inflation reduces pressure on the Federal Reserve to maintain elevated interest rates, fuelling hopes for earlier rate cuts or at the very least, a pause in tightening.”

CPI Data

According to the latest report from the Bureau of Labor Statistics, the CPI rose 2.4% year-over-year in March – a slower pace than February’s 2.8% increase and better than economists’ expectations, which were for a 2.5% rise.

Month-over-month, prices fell by 0.1% in March, marking a shift from February’s 0.2% increase and better than the expected 0.1% rise.

“This is particularly supportive for crypto, which tends to perform well when liquidity expectations improve,” Dr. Kretov explained. “We are seeing bond yields decline and the U.S. dollar weaken, both of which are helping to lift market sentiment. Equities and crypto assets are moving higher, with Bitcoin notably regaining momentum.”

Tariff Pause

The positive data follows Trump's surprise decision to pause most of his newly imposed tariffs. The move came less than a day after new tariffs were implemented, offering some relief to global markets.

Before the move, tariff uncertainty had erased trillions of dollars from markets around the globe. The crypto market, specifically, had lost 40% in trade volume throughout Q1, with the overall market cap dropping 17% to $2.71 trillion.

“The broader outlook remains fragile,” Dr. Kretov said. “One key risk is trade policy. The Trump camp is actively signalling potential new tariffs and protectionist measures.” He noted that if these policies are implemented, they could undermine recent progress on inflation and reignite market volatility.