The latest Consumer Price Index (CPI) report from the US for April 2025 shows that annual inflation remained at 2.4%, in line with analysts' expectations. Core inflation fell to 2.8%, indicating a gradual cooling of price pressures. However, the resilience of core inflation metrics raises concerns, as the Federal Reserve is closely monitoring this data to determine monetary policy.
This creates uncertainty for financial markets. Stable inflation could support expectations for Federal Reserve rate cuts, positively affecting stocks and cryptocurrencies. However, if inflation remains persistent, the Federal Reserve may maintain a tight policy, putting pressure on risk assets.
The cryptocurrency market, particularly Bitcoin, is sensitive to macroeconomic signals. A decrease in inflation and a reduction in trade tensions between the US and China may contribute to the growth of cryptocurrencies, forecasting Bitcoin above $109,000. However, volatility will remain high due to geopolitical risks and Federal Reserve decisions.
Investors should closely monitor the upcoming CPI reports, as they will determine the direction of the markets in 2025.
