Bitcoin Surges on Binance as Investors Seek Inflation Hedge Ahead of CPI Data
As inflation concerns grow ahead of the upcoming Consumer Price Index (CPI) data release, Bitcoin deposits on Binance have seen a significant spike. Investors appear to be turning to cryptocurrency as a hedge against potential inflationary pressures, with Binance’s BTC reserves increasing notably. This movement highlights the market’s cautious stance and the growing role of Bitcoin as a safe-haven asset in times of economic uncertainty.
Bitcoin as Inflation Hedge: Investors Flock to Binance Before CPI Data
Amid investor concern over inflation and the upcoming CPI data release, Bitcoin holdings on Binance surged by 22,106 BTC. Traders are moving funds to Binance in anticipation of inflationary changes linked to CPI and tariffs. This rise in Bitcoin deposits signals market caution as investors seek refuge in crypto ahead of the CPI report. CryptoQuant recorded that the Binance exchange reserve increased from 568,768 BTC on March 28th to 590,874 BTC on April 9th, depicting a significant rise in Bitcoin inflows that could be attributed to market turmoil expected after the CPI release.
Over $450M Exits Spot Bitcoin ETFs Amid Trade War Concerns
Spot Bitcoin ETFs witnessed significant outflows on April 8 and 9, totaling over $450 million. On April 8, BlackRock’s IBIT saw the largest outflow, losing $252.9 million, followed by Bitwise’s BITB and ARK’s ARKB, which shed $21.7 million and $19.9 million, respectively. Outflows continued on April 9, led by IBIT with another $89.7 million in redemptions and Grayscale’s BTC product with $33.8 million. The only ETF to experience inflows during these two days was BITB, which added $6.7 million. These movements are believed to be a market reaction to escalating trade tensions.
Crypto Market in ‘Dead Cat Bounce’ Phase, Institutions Cashing Out
Bitcoin price has soared back towards 82k as it bounces back from its five-month low of $74.5K. This surge comes after President Donald Trump’s surprise decision to pause most tariffs for 90 days. While investors see this as a glimmer of hope, financial analyst and Whalewire founder Jacob King warns of an upcoming crash, stating that this surge is just a “dead cat bounce”—a temporary rise before another major crash. According to King, this recent rally could be a temporary recovery before another major downturn.
BRICS Bitcoin Deals and Global Tariff Negotiations
BRICS countries (Brazil, Russia, India, China, and South Africa) are expected to make backroom deals in the next 90 days to reduce tariffs. These reductions, although officially stated as 10%, may involve smaller exemptions. As the U.S. and China compete globally, countries may begin to align more closely with either Trump or China, leading to a weakening of the multipolar world concept. One major shift is the U.S. dollar losing its grip in energy markets, with China and Russia turning to Bitcoin and other digital currencies for trade.
Tariffs and Trade Tensions May Boost Bitcoin Adoption: Grayscale
A research report by asset manager Grayscale suggests that tariffs and trade tensions could be positive for Bitcoin (BTC) adoption in the medium term. Higher tariffs may lead to stagflation, which is detrimental to traditional assets but beneficial for scarce commodities like gold. Bitcoin, seen as digital gold, is viewed as a modern store of value. Cryptocurrencies surged recently following a tariff pause announcement by President Trump.
U.S. CPI Declined in March; Core Rate Rose Just 0.1%; Bitcoin Rises
Inflation in the U.S. declined at the headline level in March, with the Consumer Price Index (CPI) falling 0.1% against expectations of a 0.1% increase. On a year-over-year basis, headline CPI increased just 2.4% compared to forecasts of 2.6%. Core CPI, which excludes volatile food and energy prices, climbed 0.1% in March against forecasts of 0.3%, with a year-over-year increase of 2.8%. These figures have reignited debate about the Federal Reserve’s next steps on interest rates. Following the news, the price of Bitcoin (BTC) ROSE modestly to above $82,000.
