𝑻𝑯𝑬 𝑭𝒆𝒅 𝑯𝑶𝑳𝑫𝑺, 𝑩𝑼𝑻 𝑩𝑰𝑻𝑪𝑶𝑰𝑵 𝑫𝑶𝑬𝑺𝑵'𝑻 𝑭𝑳𝑰𝑵𝑪𝑯

Inflation came in softer than expected and the market did what markets do — it celebrated before reading the fine print. Consumer prices rose 0.9% month-over-month, sitting at 3.3% year-over-year, still comfortably above the Federal Reserve's 2% target.

The number was encouraging enough to spark optimism, not enough to change anything. The Fed is staying put, and traders know it — the probability of an April rate cut sits at exactly zero percent.

Yet Bitcoin jumped anyway. A roughly 1.5% move carried price to around $73,000, a reminder that crypto does not always wait for permission from monetary policy to make its point.

The relationship between interest rates and Bitcoin is not complicated. Lower rates reduce the appeal of holding cash and traditional yield instruments, pushing capital toward riskier, higher-returning assets.

Bitcoin benefits. Higher rates do the opposite — they give money somewhere comfortable to sit, and risk assets feel the cold. Right now the Fed is holding, which means the ceiling on short-term momentum remains in place even as the floor is being defended.

Energy prices jumping roughly 11%, with gasoline surging over 21%, adds another layer of complexity. Inflation is not defeated. The Fed knows this. The market knows this too.

What keeps the bull case alive is structure. Bitcoin holding above $72,000 maintains the pressure on the upside, and the next meaningful conversation begins at $75,000. A clean break there opens the door toward $80,000 — and beyond that, the $100,000 narrative re-enters the room with its coat on, ready to stay.

Geopolitical noise will keep volatility company in the meantime. But the chart is not asking for perfect conditions. It is asking for $75,000.
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