Bitcoin Sees 'Short Term Volatility' After Inflation Data, Altseason Remains Distant

Bitcoin BTC/USD and the broader crypto market briefly dipped in mid-day trading, reflecting worries over accelerating inflation.

What Happened: Crypto analyst Ali Martinez commented “not good” on the unexpectedly high inflation numbers as analyst Kevin pointed out that headline inflation above 3% is a bearish signal and reinforces the idea that altseason is still far off.

Trader Ash Crypto, however, sees the pullback as short-term volatility, arguing that a 0.1% CPI difference (from 2.9% to 3.0%) was mostly due to higher oil prices—a predictable seasonal effect.

“If CPI expectations had been set at 3.0%, today's number would be seen as bullish. People don’t actually understand the data—they just react to popular predictions,” added the trader.

Also Read: Bitcoin, Meme Coins Dominate Crypto, But Other Projects Suffer, Analyst Says

What's Next: Daan Crypto Trades believes that while the CPI surprise isn’t great for short-term price action, it removes an uncertainty from the market. However, potential new tariffs remain a risk.

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Looking ahead, TheFlowHorse predicts the S&P 500 to possibly move lower next week, putting Bitcoin under pressure.

Economist Alex Krüger noted that while CPI was hotter than expected, a March rate cut was already unlikely as odds fell from 4.5% to just 0.5%.

The first Fed rate cut is now projected for September instead of July.

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