Bitcoin and Ethereum are in focus following the release of the latest US Consumer Price Index (CPI) data since the beginning of the US-Iran war. March's CPI showed a 3.3% rise in inflation, aligning with expectations and reflecting the increased cost of living attributed to the conflict in the Middle East. Despite the high inflation figure, both Bitcoin and Ethereum prices remained relatively steady. Bitcoin traded around $72,233, gaining 1.24% intraday, while Ethereum increased by 1.8% to $2,220.
The US-Iran war, which began in late February 2026, has had a multifaceted impact on the crypto market and broader economy. Rising energy prices due to the conflict have contributed to inflationary pressures, while the closure of the Strait of Hormuz has further exacerbated the situation. Japan's PPI rate, for instance, has hit a four-month high. However, the rise in inflation could also drive demand for Bitcoin as an inflation hedge.
Technical analysis suggests potential for further price movements. Bitcoin has formed a bull flag pattern, signaling a possible breakout towards $77,000. Ethereum's chart also shows a similar bull flag, with a confirmed breakout potentially pushing the price above $2,400. However, analysts caution that the market remains sensitive to macroeconomic headlines and geopolitical developments. Any escalation of the US-Iran conflict could trigger a sharp decline in cryptocurrency prices, while a lasting ceasefire could lead to renewed inflows into the crypto market.
The Federal Reserve's response to rising inflation remains a key factor. Currently, markets have largely priced in no interest rate cuts in the near term. However, if inflation begins to cool, the Fed may be more inclined to cut rates, which could further boost crypto markets. Investors should closely monitor CPI data and geopolitical developments to gauge the potential trajectory of Bitcoin and Ethereum prices in the coming weeks.
