Crypto Prices Gain as US Inflation Cools to 2.8%

On March 13, 2025, the crypto market experienced a slight price gain following the release of data indicating that US inflation is cooling. This development has sparked hope among investors that the Federal Reserve may adopt a dovish monetary policy, which could drive demand for risk assets. With inflation easing, the focus shifts to how this will impact the prices of top crypto coins such as Ethereum, XRP, and Dogecoin.

Bitcoin's price rebounded above $83,000 today, pushing other crypto coins up after the US Consumer Price Index (CPI) cooled to 2.8% in February. The core CPI, which excludes food and energy costs, dropped to 3.1%, while the annual inflation rate eased to 2.8%, outperforming the expected 2.9%. Despite this drop, inflation remains above the Fed’s target rate of 2%. Additionally, President Trump’s tariff hikes and fears of a US recession this year have not significantly boosted investor confidence.

Economists have noted that despite the cooling inflation, the Fed faces the challenge of balancing this data with the risks posed by tariffs. Data from the CME FedWatch Tool indicates that 97% of investors anticipate that the Fed will leave rates unchanged at between 4.25% and 4.5% at next week’s FOMC meeting. However, some analysts remain hopeful that the Fed should trim rates, arguing that the real inflation rate is lower than 2.8% and that easing monetary policy could stimulate spending.

As fears of inflation ease, the impact on crypto coin prices becomes a focal point. Ethereum's price today remains bearish despite Bitcoin’s gains, trading at $1,873 with a 1.8% drop in 24 hours. CryptoQuant CEO Ki Young Ju has noted that the price of ETH has plunged due to active selling over the past three months, with the NetTakerVolume Chart showing massive outflows. Such intense selling may lead to seller exhaustion, potentially preceding a major ETH price rebound. The RSI on the Ethereum daily price chart stands at 31, indicating that the crypto coin is currently oversold. If this marks a local bottom for ETH, the price first needs to retake the $2,000 psychological level, with the next resistance zones lying at $2,150 and $2,400.

Dogecoin is also showing signs of recovery as crypto prices move up today. The largest meme coin could be on the verge of an upswing after a surge in the number of active addresses. Popular analyst Ali Charts noted that the active address count on the Dogecoin network had increased by 47% over the past month from 110,000 to 163,000. This increase is bullish for Dogecoin's price today after DOGE bounced from support, suggesting increased participation from traders, which may help drive an upward price trend as crypto coins rebound.

XRP's price today has made a rebound and could also be on the verge of a major price rally due to several bullish catalysts. Ripple obtained a DFSA license to operate in Dubai, one of the biggest crypto hubs, which will help boost adoption and possibly drive an XRP price rally. Additionally, the SEC vs. Ripple lawsuit is on the verge of a settlement, which is also good for Ripple's price. As crypto prices show signs of a rebound today, XRP is well-positioned for an uptrend.

Crypto prices posted slight gains today as cooling inflation fueled optimism about a Federal Reserve rate cut. Risk assets like Dogecoin, Ethereum, and XRP could see renewed bullish momentum that may catalyze a sustained price rally. The easing of inflation fears and the potential for a dovish monetary policy from the Fed could provide a favorable environment for these crypto coins to rebound and potentially rally in the coming days.