The U.S. CPI report for April 2025, set for release today, is a pivotal event for crypto markets. Economists expect annual inflation to remain at 2.4%, but alternative data like Truflation hints at a potentially lower figure. A CPI below 2.3% could fuel optimism, prompting rate cut expectations and driving Bitcoin toward or beyond $106,000. Conversely, a reading above 2.4% would likely bolster the U.S. dollar, pressuring Bitcoin toward $100,000.
Bitcoin currently trades around $102,000, down from a recent high of $105,819, reflecting cautious sentiment ahead of the report. Technical indicators show a mixed outlook; a bullish MACD crossover on the weekly chart suggests upside potential, but traders remain wary. Institutional interest is strong, with major holdings by firms like Strategy and BlackRock providing support. As the CPI report approaches, traders should watch for rapid volatility and consider risk management strategies like options to navigate the potential market reaction.
