BTC Price Falls Below $80K, US Headline Inflation Rises By 2.4%

Bitcoin (BTC) price fell below $80K after finding support at the $81,000 level. At the time of writing it was valued at $79,188.44, posting a 1.81% recovery over 24 hours.

Bitcoin’s bullish price reversal coincides with the release of US economic data. The inflation rate was at 2.4% for March, as per official data from the US Labor Department

That is a significantly lower rate as compared to the 2.8% rate registered in February. It also means that since September, this is the slowest rate of inflation.

It is noteworthy that for the first time, there has been a monthly price decline of 0.1% for the first time since September last year.

This has brought some optimism among market participants that the cooling of inflation will work out in favor of crypto assets, including Bitcoin.

Furthermore, based on this, Cardano founder Charles Hoskinson predicted that BTC could hit $250,000 by the end of 2025.

Latest Inflation Data and Impact on Market

Market analyst Benjamin Cowen discussed the latest US economic data in his Thursday’s post on X.

He noted that inflation cooled in March, as the 12-month inflation rate dropped from 2.8% in February to 2.4%.

Not only did this figure fall short of the 2.5% anticipated by market analysts, but it also marked a 4-year low.

The U.S. Bureau of Labor Statistics attributed the easing of inflation in March partly to lower fuel prices.

Notably, gasoline tumbled 9.8% annually, while food prices climbed 0.4% monthly.

Following the release, stock market futures plummeted sharply on Wall Street, while Treasury yields also turned negative.

Meanwhile, tensions have continued to rise between US President Donald Trump and the US Federal Reserve Chair Jerome Powell. Trump has made a strong case for Powell to lower interest rates.

However, Powell has repeatedly said that the Federal Reserve would not cut interest rates unless data shows otherwise.

In a recent public speech, Powell voiced concerns about the rising inflation after Trump’s tariffs were fully implemented.

He, however, revealed plans by the Federal Reserve to continually monitor the economic progress before making any major policy changes.

BTC Price and US Tariff Outlook

The release of the US economic data comes days after Trump announced a reciprocal tariff against dozens of nations.

President Trump swiftly boosted tariffs on Chinese imports to 125%, hours after China hiked tariffs on US goods to 84%.

As the tariff wars between the U.S. and China escalated, BTC price dipped to a local low of $74,434 on Monday.

Data from CryptoQuant has revealed that short-term holders contributed largely to the selling pressure.

These investors contributed roughly $10 million worth of liquidity outflows on Monday.

On the other hand, long-term holders purchased $9 billion worth of the crypto, leaving a net $1 billion worth of downside.

Meanwhile, Trump announced on Wednesday a delay in some of the most aggressive duties.

The President, instead, placed a 10% blanket levy on all imports announced last week.

He also set a 90-day window during which the White House would negotiate higher tariffs.

Following the announcement, Bitcoin bounced back above $80,000, alleviating concerns of price dipping below $70,000.

Cardano Founder Projects $250,000 for Bitcoin

Bitcoin’s daily trading volume surged by 12.66% to $69.39 billion, suggesting increased market activity for the flagship coin.

Amid the ongoing price dynamics, Charles Hoskinson has predicted that BTC price could hit $250,000 before the end of 2025.

Hoskinson also claimed that growing crypto adoption by tech giants, including Microsoft and Apple, is likely to fuel this rally.

Further, he noted that global tensions are likely to push governments and institutions to consider crypto investments.

Charles Hoskinson cited the war between Russia and Ukraine as an example of how global order is deteriorating, which may ultimately bolster crypto adoption. According to him, the “…only option for globalization is crypto.”