Bitcoin jumps to $73K

Bitcoin traded around $73,000 on April 11 after a March inflation report came in hot on the headline number but softer on core prices. (bls.gov) (coindesk.com) The U.S. Bureau of Labor Statistics said the Consumer Price Index rose 0.9% in March and 3.3% from a year earlier. Core inflation, which strips out food and energy, rose 0.2% in March and 2.6% over 12 months. (bls.gov 1) (bls.gov 2) Energy drove the jump: the energy index rose 10.9% in March, and gasoline climbed 21.2%, accounting for nearly three quarters of the monthly increase in overall prices. (bls.gov) Crypto traders focused on the split inside that report. CoinDesk reported Bitcoin rose after the lower-than-expected core reading, even as headline inflation accelerated on fuel costs. (coindesk.com) That matters for interest rates because the Federal Reserve targets inflation near 2%, and core prices usually carry more weight than one-month swings in gasoline. Fed Vice Chair Philip Jefferson said on March 26 that inflation remained above target and that higher energy prices complicated the outlook for monetary policy. (federalreserve.gov) (bls.gov) The Federal Reserve’s March 17-18 projections were built before the April 10 inflation release, so traders spent Friday repricing what the next rate move might be. The next policy decision now turns on whether March’s energy shock fades or spills into broader prices. (federalreserve.gov) (bls.gov) Bitcoin also had another tailwind this week from exchange-traded fund demand. CoinDesk reported U.S. spot Bitcoin exchange-traded funds pulled in $471 million on April 6, the biggest daily inflow since February 25. (coindesk.com) That combination — sticky inflation, a less alarming core reading, and fresh fund inflows — helped push Bitcoin back toward a level it had already tested in early March. Bloomberg reported on March 4 that Bitcoin had also surged past $73,000 on exchange-traded fund inflows and rising derivatives activity. (bloomberg.com) (coindesk.com) For now, the market is treating $73,000 less like a verdict on inflation than a bet that the March price spike was concentrated in oil and gasoline, not the whole economy. The next inflation and Federal Reserve readings will test that trade quickly. (bls.gov) (federalreserve.gov)