$XRP Jumps to $1.42 After Softer CPI — All Eyes on March 4 Fed Beige Book
XRP attracted renewed buying interest after U.S. inflation data came in softer than expected. January CPI rose just 0.2% month over month (vs. 0.3% forecast), while annual inflation eased to 2.4% — one of the lowest readings in nearly five years.
After briefly dipping 0.95% following the release, XRP quickly reversed course, rallying 3.76% to reach a session high near $1.42. At the time of writing, the token is trading around $1.41, up more than 3.5% on the day, showing strong dip-buying demand above the $1.36–$1.37 intraday support zone.
🔹 Market Reaction to January CPI
Data from the U.S. Bureau of Labor Statistics showed:
• CPI: +0.2% MoM (below 0.3% estimate)
• Annual inflation: 2.4%
• Core CPI: +0.3% MoM (in line with expectations)
While the print was broadly supportive for risk assets, initial volatility reflected typical algorithm-driven swings around macro releases. Once the data settled, buyers stepped in aggressively.
🔹 Is 3% the “New Normal”?
For crypto investors, the bigger story isn’t just the 2.4% headline — it’s how markets interpret the Fed’s next move.
There’s growing institutional belief that the Federal Reserve may tolerate a higher long-term inflation range (2.5%–3.5%) rather than aggressively forcing inflation back to 2%. If that view gains traction, high-beta assets like XRP — along with hard assets such as gold — could continue repricing higher as real rates adjust.
📅 What’s Next?
Attention now turns to the Federal Reserve’s Beige Book on March 4. While not a rate decision, the report will provide qualitative economic insights that could confirm whether the disinflation trend is sustainable — and shape expectations for future policy moves.