Bitcoin, Ethereum Rise as Inflation

​In recent days, Bitcoin and Ethereum have experienced notable price movements influenced by various economic factors, including inflation data and trade policies.​

Bitcoin’s Performance:

Price Increase Following Tariff Pause: On April 9, 2025, Bitcoin’s price surged from below $77,000 to approximately $83,000 after President Donald Trump announced a 90-day pause on certain tariffs. This announcement led to a rally in risk assets, including cryptocurrencies. ​

Comparison with Stock Market: Despite Bitcoin’s gains, traditional stock indices like the S&P 500 and Nasdaq experienced even more significant increases, jumping 9.5% and 12%, respectively, following the tariff pause. ​
Barron’s

Ethereum’s Performance:

Inflationary Concerns: Ethereum has faced challenges related to its supply dynamics. Following the Dencun upgrade, which aimed to reduce transaction fees, the network experienced decreased activity and a reduced burn rate of ETH tokens. This shift has led to an increase in Ethereum’s total supply, raising concerns about its inflationary status. ​
cointelegraph.com

Price Decline Amid Inflation Data: Recent economic data indicating higher-than-expected inflation has impacted Ethereum’s price. For instance, on March 28, 2025, Ethereum’s price declined following the release of the U.S. core PCE Price Index, which showed a 2.8% year-over-year increase, surpassing market expectations. ​
fxstreet.com

Cryptocurrencies as Inflation Hedges:

The role of cryptocurrencies like Bitcoin as hedges against inflation remains a topic of debate. While some view Bitcoin’s fixed supply as a safeguard against currency devaluation, its recent price volatility suggests that it may not consistently serve as a reliable inflation hedge. ​

In summary, Bitcoin and Ethereum’s recent price movements have been influenced by a combination of trade policy announcements and inflation data. Investors should consider these factors, along with the inherent volatility of cryptocurrencies, when evaluating their potential as hedges against economic uncertainties.