#CryptoCPIWatch Today's crypto market is heavily influenced by the upcoming Consumer Price Index (CPI) report. Here's what's happening:
*CPI Report Expectations*
- The April CPI report is set to release today, with forecasts suggesting a year-over-year increase of 2.3%, slightly cooling from March's 2.4%.
- Core CPI is expected to land at 2.8%.
- A lower CPI reading could boost Bitcoin's price, potentially driving it to new all-time highs, while a higher reading might trigger consolidation or a short-term dip.¹
*Market Reaction*
- Bitcoin's price surged above $105,000, reaching levels near its all-time high, with a bullish MACD cross signaling potential upside.
- Ethereum's price also rose, breaking out of a holding pattern and reaching $2,500.
- The overall crypto market cap surpassed $3.2 trillion, driven by decreased economic concerns and investor optimism.
*Key Catalysts*
- *US-China Trade Talks*: Positive sentiments surrounding trade talks have contributed to the market surge, with expectations of a favorable outcome potentially capping inflation pressure and opening room for the Federal Reserve to loosen policy.
- *Federal Reserve Policy*: The Fed's decision on interest rates will be influenced by the CPI report, with a weaker-than-expected read potentially leading to rate reductions and a boost for cryptocurrencies.²
*Current Prices*
- Bitcoin: $103,470.10 (0.26% increase in 1 hour, 1.2% increase in 24 hours)
- Ethereum: $2,477.58 (0.05% increase in 1 hour, 3.2% increase in 24 hours)³#CryptoCPIWatch