Inflation Runs Hot While Bitcoin Soars to New Heights

• U.S. Consumer Price Index rose faster than expected in February, up 3.2% year-over-year versus estimates of 3.1%

• Core CPI rate dipped slightly but still disappointed at 3.8% against expectations of 3.7%

• On monthly basis, CPI rose 0.4% in line with estimates, core CPI rose 0.4% ahead of 0.3% expectations

• Markets had priced in 5-6 Fed rate cuts in 2024, but decent growth and stubborn inflation have pushed out timing of first cut to summer

• Bitcoin has rallied 70% year-to-date to record high above $70,000 thanks to massive demand from spot ETFs