Crypto CPI Watch: Inflation Data Could Steer Market Direction
As of May 13, 2025, Bitcoin (BTC) is trading at $102,523, experiencing a 1.74% decline amid investor caution ahead of the U.S. Consumer Price Index (CPI) release. Economists anticipate a 0.2% month-over-month increase in headline CPI and a 0.3% rise in core CPI for April, maintaining year-over-year rates at 2.4% and 2.8%, respectively.
The crypto market is closely monitoring these figures, as higher-than-expected inflation could prompt the Federal Reserve to maintain elevated interest rates, potentially dampening risk asset appetite. Conversely, a lower CPI reading may bolster expectations for rate cuts, potentially fueling a rally in cryptocurrencies.
Traders are advised to watch key BTC support at $100,000 and resistance at $104,500. The CPI data, scheduled for release at 8:30 a.m. ET, is poised to influence market sentiment and could set the tone for crypto price movements in the coming weeks.
