Bitcoin Rebounds to $70,000 as Fed Rate Cut Bets Rise Following Softer January CPI Data

Bitcoin climbed back to $70,000 in March 2025 after falling to around $60,000 earlier in the month, rising roughly 5% over 24 hours as expectations for Federal Reserve interest rate cuts intensified following lower-than-anticipated January Consumer Price Index readings. The implied probability of an April 2025 rate cut jumped from 35% to 68% on prediction platforms including Kalshi and Polymarket, while expectations for total 2025 cuts moved from 2.5 to 3.5. Analysts noted that higher trading volumes, visible institutional buying across major exchanges and the recovery of the key $70,000 psychological level underscored Bitcoin's growing sensitivity to macroeconomic signals.