#CryptoCPIWatch As of May 13, 2025, the cryptocurrency market is experiencing heightened volatility ahead of the U.S. Consumer Price Index (CPI) data release, a key indicator of inflation that could significantly influence Federal Reserve interest rate decisions and, consequently, crypto asset valuations.

Bitcoin (BTC) has dipped below $102,000, with significant profit-taking observed as traders await the CPI data. This decline has led to over $730 million in leveraged position liquidations across the crypto market, with 73% being long positions, indicating a strong bullish bias that was caught off guard by the downturn.

The upcoming CPI report, scheduled for release at 8:30 AM ET, is expected to show a 2.4% year-over-year increase. A higher-than-expected figure could signal persistent inflation, potentially leading to tighter monetary policy and further pressure on crypto prices. Conversely, a lower-than-expected CPI could bolster hopes for rate cuts, possibly triggering a rebound in cryptocurrencies.

Technical indicators, such as a bullish divergence in Bitcoin's Relative Strength Index (RSI), suggest that selling momentum is weakening, which could indicate a potential trend reversal if the CPI data aligns favorably.

Investors are advised to monitor the CPI release closely, as it will likely set the tone for crypto market movements in the near term.