Bitcoin price surpasses $104K as April CPI slows to 2.3%, renewing investor interest ahead of bullish momentum and Fed decision.
Bitcoin rose above $104K as April CPI cooled to 2.3%, raising Fed rate cut conditions and fueling bullish market sentiment.
Bitcoin Rises Above $104K As Inflation Cools
Bitcoin rallied sharply on Monday following the release of April's US Consumer Price Index (CPI). According to data from Trading Economics, the US Consumer Price Index (CPI) rose to 320.80 points in April from 319.8 points in March 2025.
Annual inflation in the US eased to 2.3 percent in April 2025, the lowest since February 2021, down from 2.4 percent in March and 2.4 percent forecast.
In particular, annual inflation, which increased by just 2.1% year-on-year, caught the attention of investors, as it reflected the lowest increase in inflation recorded after 2021.
This reinforces market expectations for a Federal Reserve policy rate cut during the next FOMC meeting.
Within two hours of the data release, $BTC was up 2.9% at press time to $104,771, after dropping to $101,868 on Monday.
The move was accompanied by a 35% increase in bitcoin spot volume on Binance's BTC/USDT pair.
TradFi market reaction was also notable as shares of Coinbase Global ( COIN ) rose 5.3% to $215 in pre-market trading, reflecting positive sentiment around cryptocurrency-related stocks.
S&P 500 futures also rose 1.1% to 5,300, reflecting a synchronized recovery in global risk asset markets.
$68.6 billion BTC open interest reaffirms bullish dominanc
BTC's price action was supported by a decisive shift in derivatives markets, reflecting increased bullishness by traders.
Open interest in bitcoin futures rose 2.38 percent to $68.57 billion. Options open interest rose 2.50% to $39.89 billion.
On Binance, the top trader's long/short ratio reached 1.595. The market-wide ratio stood at 0.9724, reflecting a clear directional tilt to the upside.
Liquidation trends recorded over the past 24 hours also confirm this bullish change in short-term momentum. Since CPI's release, $84.61 million of leveraged positions have been cleared.
Short positions contributed $28.27 million of that total, with 81% of short liquidations occurring in the first hour. The CPI data captured a large portion of the market unhedged.
On the other hand, futures trading volume decreased by 13.71 percent to $104.67 billion. Options volume also fell 9.64%.
This indicates that while bullish positions have been established, short-term traders are now cautiously watching for further macro confirmation before increasing leverage exposure further.
Looking Ahead: $BTC Eyes $110,000 as Rate Cut Bets Firm Up
The combination of easing inflation, rising open interest, and strong spot demand points to continued upside for Bitcoin.
Attention will now turn to upcoming comments from Federal Reserve Chair Jerome Powell and the release of the FOMC minutes. Clarification of the central bank’s stance will be crucial to validate the market’s current rate cut expectations.
For now, Bitcoin is benefiting from macro relief, increased trading volume, and increasing capital flows, all of which are currently shaping up positively for BTC, which continues its upward momentum toward new all-time highs near $110,000.
Bitcoin Technical Price Analysis: Bulls Eye $110K as RSI Holds Strong and Volume Delta Rebounds
In today’s Bitcoin price forecast, the confluence of Bollinger Bands, positive volume delta, and elevated RSI supports a bullish view towards the $110,000 mark.
As seen in the trading view chart below, Bitcoin is trading at $104,560 after gaining nearly 18% over the past 12-hour session, indicating bullish recovery following a consolidation phase.
Moreover, $BTC price has clearly broken above the mid-$100K range, with sustained closes above both the Bollinger Basis Band ($100,182) and Upper Envelope Band ($100,614), suggesting strong directional conviction.
Bollinger bands are widening, which is often a precursor to a volatile move, as candles are hovering near the upper band at $108,439, reinforcing the potential for a bullish continuation.
The strength of the momentum is further confirmed by the RSI holding at 72.52, which is marginally above the 70 range that usually defines overbought conditions.
However, a sustained rise in the RSI without any divergence indicates trend strength rather than exhaustion, especially when the RSI line maintains a gradual upward slope above its signal.
Notably, the recent increase in positive volume delta to +1.27K marks the highest buyer dominance since early May, indicating renewed demand for the spot.
Downside risks remain limited as long as BTC holds above the psychological $100,000 support, which is consistent with both midband support and historical resistance that has now turned into support.
A clean break below $100,000 with weakening volume could reopen bids towards $92,850.
#BTC #CryptoNewss #MarketSentimentToday #Market_Update #alart