Bitcoin, ETH price coil after inflation cools and US-China tariffs roll back

Lower CPI and tariff rollbacks boost crypto’s outlook despite economic concerns and Fed rate uncertainty.

• The crypto market’s strength sustains even as investors continue to ponder the impact of raising the US debt ceiling. 

The cryptocurrency market responded positively to Wednesday’s Consumer Price Index (CPI) report and reduced prospects of an escalating trade war between the US and China. Demand for alternative hedge instruments typically weakens in such scenarios, yet Bitcoin 

BTC

$108,310

 neared $109,000, while Ether 

ETH

$2,755

 posted a 3% gain, trading above $2,800.

While it’s too early to call it a trend, the crypto market appeared to slightly diverge from traditional assets. The S&P 500 index gave back part of its earlier gains, which had initially been driven by US President Donald Trump’s announcement of a new trade agreement with China. 

According to the deal, both nations will roll tariffs back to levels seen in February 2025, easing tensions and removing retaliatory taxes. However, the stock market’s performance suggests that investors were underwhelmed, even though the move significantly reduced the risk of economic fallout.