Following the publication of U.S. inflation data showing a slower-than-expected increase in consumer prices for March, Bitcoin price after CPI shot to $72,500 on April 10, 2024. While core CPI (excluding food and energy) rose 3.8%, matching estimates, the Consumer Price Index (CPI) rose 3.4% yearly, somewhat above forecasts of 3.5%. Driven by the anticipation of a Federal Reserve rate reduction later this year, the weaker inflation print revived optimism and raised risk assets, including Bitcoin. Based on CME FedWatch data, analysts now estimate a 68% possibility of a Fed rate drop in September, up from 55% pre-report.
The gathering emphasizes how sensitive Bitcoin is becoming to macroeconomic developments. BTC’s price movement matched the general risk-on attitude as conventional markets rallied: the S&P 500 rose 1.2% and gold hit $2,380/ounce. Still, volatility continues. After the CPI announcement, Bitcoin dropped momentarily below $69,200 before rebounding, underscoring traders’ caution given conflicting Fed signals and Middle Eastern geopolitical concerns.
CPI Sparks Bitcoin
The March CPI report relieved stagflation concerns by marking the first decline in headline inflation since June 2023. Key contributors were a 0.2% drop in used car prices and a 1.1% monthly drop in gasoline prices. Comprising 35% of the CPI, shelter inflation rose 0.4%, down from 0.5% in February. Still high, the figures indicated movement toward the Fed’s 2% target. The answer to Bitcoin was instantaneous.
BTC rose 4%, surpassing $71,000 within one hour of the publication. Analysts linked the change to expectations of more flexible monetary policy, which traditionally increases assets with great sensitivity to liquidity. Real yields—bond yields less inflation—dropped to 1.8%, increasing Bitcoin’s value appeal. According to Lyn Alden, creator of Lyn Alden Investment Strategy, the market is pricing in a softer Fed. “Bitcoin gains when actual yields drop.”
Bitcoin Demand Returns
On April 10, U.S. spot Bitcoin ETFs showed $220 million in net inflows, reversing a three-day outflow pattern. While Fidelity’s FacebookTC added $60 million, BlackRock’s IBIT led with $145 million. The GBTC of Grayscale saw outflows decelerate to $15 million, the lowest since January. At $12.8 billion, cumulative ETF inflows show BTC holdings exceeding 840,000 coins.
The comeback in ETF demand matched MicroStrategy’s most recent purchase of Bitcoin. In March, the software company bought 9,245 BTC for $620 million, increasing its overall holdings to 214,400 BTC ($15.4 billion). Declaring Bitcoin “the only institutional-grade digital asset,” CEO Michael Saylor cited its scarcity and decentralization.
Bitcoin Eyes Breakout
Bitcoin price after CPI tests a crucial point at $72,500, which caps rallies since mid-March. A daily closing above this barrier might set off a sprint toward the all-time high of $73,800. On the 4-hour chart, the Relative Strength Index (RSI) is 62, which avoids the overbought area and indicates an opportunity for higher. Support comes at $69,200, the low for the week, then the 50-day moving average ($67,100). Options data shows a strong attitude by massive call purchasing at $75,000 and $80,000 strikes for April expiration. Open interest in Bitcoin futures is still high at $38 billion, which increases the potential of erratic liquidations.
Miners Accumulate Ahead
Ahead of the April 20 halving, bitcoin miners are accumulating BTC, therefore reducing block rewards from 6.25 to 3.125 BTC. Rising 2% from March, per CryptoQuant, mineral reserves in April reached 1.82 million BTC. Making advantage of pre-halving profitability, Marathon Digital and Riot Platform announced record production in Q1. Smaller miners, in contrast, are under pressure. This week, the network hash rate dropped 4% as older machines were phased out. “Post-halving, only miners with sub-$0.05/kWh energy costs will survive,” claimed Hashlab Mining CEO Jaran Mellerud. Since effective miners keep BTC for longer-term appreciation, this consolidation could lower selling demand.
Bitcoin’s Dual Narrative
Released April 10, the March meeting notes from the Fed highlighted worries about ongoing inflation. Officials underlined the “greater confidence” requirement before rate reduction, lowering chances for a June drop. Chair Jerome Powell again underlined that policy is still data-dependent and that labor market strength complicates the road towards 2% inflation. Given its relationship with tech companies (0.75 vs. Nasdaq), Bitcoin is still a risk asset susceptible to hawkish Fed moves. But its 30-day relationship with gold has become 0.6, reflecting rising demand as a counter against currency debasement. “BTC is straddling both narratives,” Markus Thielen of Matrixport remarked. This is a tech play and digital gold.”
Conclusion
The Bitcoin price after CPI on more subdued inflation statistics emphasizes its development as a macroeconomic asset. Since ETF inflows are recovering and halving is likely to lower supply, BTC’s foundations seem strong. Still, the Fed’s cautious approach and geopolitical unrest add uncertainty that guarantees volatility stays high. The next weeks will test Bitcoin’s resilience. A break over $73,800 could spark FOMO-driven purchases; a fall below $69,200 could set off a series of liquidations. Although investors should prepare for volatility, their long-term thesis remains unbroken: scarcity, decentralization, and hedging against fiat debasement. BTC keeps carving its place as a 21st-century secure refuge in an age of economic uncertainty.
