🚨 Why $BTC Pumped on CPI News Despite Rising Core Inflation — The Real Reason
I missed one important data point in my previous CPI post — the headline CPI YoY. Sorry for that. My focus was mainly on rate cut probability, so I emphasized Core CPI and CPI index. But the headline CPI YoY is the main reason behind today’s BTC pump.
Official data showed CPI YoY dropped from 2.7% → 2.4%. This gave markets a bullish signal and increased expectations of future rate cuts. That triggered buying and short covering, pushing BTC upward.
However, the full inflation structure is still not fully bullish.
Core CPI MoM increased from 0.2% → 0.3%
CPI index increased from 324.054 → 325.252
This shows inflation is still expanding on a monthly basis.
This pump also happened on a Friday, when liquidity is thinner. In such conditions, even smaller inflows can move price faster, which can amplify short-term moves.
Most importantly, the Fed’s target is 2.0% inflation, and current inflation at 2.4% is still above that level. This means rate cuts are not confirmed yet and will depend on further consistent cooling.
👉 In summary:
BTC pumped due to headline CPI cooling
Core CPI and CPI index show inflation still exists
Rate cuts are not confirmed yet
Near-term moves can be volatile and fragile
This makes the current pump more expectation-driven, with risk of instability if inflation does not continue cooling.
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