The much-anticipated US CPI data for April 2025 was released today at 8:30 AM ET. This inflation indicator is a key focus for Bitcoin traders as it can significantly influence market sentiment and Federal Reserve policy expectations.
Leading up to the release, Bitcoin experienced some profit-taking, dipping below $102,400 as investors braced for potential volatility. The market's reaction to the actual CPI figures will be crucial.
A higher-than-expected CPI could intensify concerns about persistent inflation, potentially leading to a more hawkish stance from the Fed. This scenario might exert downward pressure on Bitcoin and the broader crypto market, as investors could favor less risky assets. Conversely, a lower-than-expected CPI might fuel hopes for earlier interest rate cuts, potentially triggering a rally in Bitcoin and other cryptocurrencies.
The interplay between inflation data, Fed policy, and Bitcoin's perceived role as an inflation hedge contributes to the uncertainty surrounding today's price action. Traders are closely watching for cues that could define Bitcoin's short-term trajectory.
