#CryptoCPIWatch The latest U.S. Consumer Price Index (CPI) data, released on May 13, 2025, revealed a year-over-year inflation rate of 2.3%, slightly below the anticipated 2.4%. This marks the smallest annual increase since February 2021, suggesting a potential easing of inflationary pressures.

**Crypto Market Reaction**

In response to the CPI data, Bitcoin (BTC) experienced a brief uptick, rising to approximately \$103,645, while Ethereum (ETH) edged higher to around \$2,503. However, these gains were short-lived, as profit-taking ensued. BTC retreated to about \$102,662, and ETH fell below the \$2,600 mark. Overall, the cryptocurrency market saw a 1.4% decline in total capitalization, settling at \$3.32 trillion.

**Institutional Activity**

Despite the market's volatility, institutional interest in cryptocurrencies remains robust. In 2025 alone, corporations have acquired over 157,000 BTC, surpassing miner supply and contributing to a supply shortage. Additionally, Bitcoin-focused exchange-traded funds (ETFs) have attracted \$934 million in net inflows over the past month, indicating sustained institutional confidence.

**Outlook**

While the softer CPI data offers a glimmer of hope for a potential shift in Federal Reserve policy, uncertainties persist. Factors such as upcoming Personal Consumption Expenditures (PCE) inflation data, Federal Open Market Committee (FOMC) minutes, and the long-term effects of recent tariff adjustments will play crucial roles in shaping the economic landscape. Investors should remain vigilant, as the interplay between macroeconomic indicators and market sentiment continues to influence cryptocurrency valuations.