Crypto markets flat as inflation cools, Trump’s tariffs spark uncertainty

Inflation has cooled more than scheduled in February, offering the hope that the federal reserve could be closer to reducing interest rates. However, the cryptography market has remained largely insensitive despite the positive economic signal.

The report of the consumer price index on Wednesday showed that inflation took place at 2.8% in the last 12 months, against 3% in January and slightly beating the 2.9% expected by economists.

Perhaps surprising, the prices of cryptography were not reactive. Bitcoin (BTC) was negotiated at $ 82,770.45 Wednesday afternoon, almost flat in recent 24 hours. The total cryptography market was estimated at 2.68 dollars, down 0.25% in the last day.

Dr. Yang: “Prices could make inflation more sticky”

Dr. Youwei Yang, Bit Mining chief economist, listed in Nyse, said in a press release obtained by Crypto.News that the reaction arranged to the market reflects deeper fears concerning political risks, in particular new trade rates of President Trump.

“The IPI lower than expected should be optimistic, signaling faster rate drops, but Crypto has not reacted strongly,” said Yang. “Weems for fear of the market require more than one good print to regain confidence.”

Yang underlined Trump’s aggressive prices on steel and aluminum, which entered into force on Wednesday, as a potential front wind for inflation and market stability. The prices have already triggered reprisal measures from Europe on $ 28 billion in American products, which should start in April.

“The real problem is that Trump’s aggressive prices, which are likely to make inflation more sticky while crushing the markets and by triggering layoffs, in particular by the Ministry of Government (DOGE),” said Yang.

This creates a difficult position for the federal reserve. “The high prices inflation makes the rate drops more difficult,” said Yang. “But market accidents and job losses put pressure on the Fed to reduce rates earlier. Cutting too early could rekindle inflation, which makes future policy more difficult. »»

Cryptographic markets want clearer political signals

Yang noted that cryptographic markets are retained due to uncertainty about future political orientation.

“Investors want stronger support from the White House or the Fed, especially after the crypto summit last week does not reassure the markets,” he said.

The recent summit of the White House of Cryptography, which brought together heavy goods vehicles and government representatives, was to inaugurate more favorable advice on cryptographic regulations. However, the lack of concrete results left the uncertain markets of the position of the administration on the crypto.

“Until clearer signals emerge, fear and uncertainty will weigh on the feeling of the cryptography market,” concluded Yang.