#CryptoCPIWatch CPI Report Sparks Market VolatilityYahoo Finance+30Morningstar+30Blockchain News+30
The April U.S. Consumer Price Index (CPI) report, released on May 14, 2025, showed a year-over-year inflation rate of 2.3%, slightly below expectations. This unexpected cooling of inflation provided a brief lift to cryptocurrencies, with Bitcoin (BTC) and Ethereum (ETH) experiencing modest gains as traders speculated on a potential Federal Reserve pivot. However, the broader crypto market faced headwinds. Bitcoin slipped below $103,000, and Ethereum declined to approximately $2,539, as traders locked in profits ahead of the CPI release. Overall, the crypto market capitalization decreased by 1.4% to $3.32 trillion, with a corresponding drop in 24-hour trading volume.
Analysts caution that while the CPI report indicates a cooling inflation trend, factors such as recent tariff rollbacks and ongoing macroeconomic uncertainties may influence future market movements. Traders are advised to monitor upcoming economic indicators and Federal Reserve communications for further insights.$BTC