The Bureau of Labor Statistics (BLS) announced that inflation in the US dropped to 0.4% in February, as expected by economists, from 0.5% in January. Year-over-year inflation also fell to 6.0% from 6.4% in January, in line with predictions.
The core rate of inflation, which excludes food and energy costs, rose more than anticipated to 0.5% in February, compared to 0.4% in January, with the year-over-year core rate at 5.5%, in line with estimates. Following the announcement, the value of Bitcoin rose to a nine-month high of $25,484, and continued to climb, reaching $26,373, a gain of 18% over the past 24 hours.
However, inflation concerns have taken a back seat as multiple bank failures have become a more pressing issue for investors, the government, and the Federal Reserve. As a result, traders have shifted their expectations, and are now predicting only a slim chance of a rate hike in March and rate cuts by mid-summer, after previously expecting a 50 basis point hike at the Fed's March meeting.