On May 13, 2025, the U.S. released its Consumer Price Index (CPI) report for Aprilโand the crypto market responded swiftly. ๐ ๐ฅ Bitcoin (BTC), Ethereum (ETH), and other altcoins saw price swings as investors digested what the numbers meant for the Federal Reserveโs future policy direction. ๐๐
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๐ Key CPI Highlights โ A Cooling Inflation? โ๏ธ
Year-over-Year (YoY) Inflation: 2.3% (vs. expected 2.4%) โ
Core CPI: 2.8% (in line with expectations) ๐
Month-over-Month (MoM) Inflation: 0.2% ๐งฎ
The data showed slightly cooler-than-expected inflation, offering temporary relief to both traditional and crypto markets. ๐ However, inflation remains above the Fedโs 2% target, so interest rate cuts are still not a guarantee. โ ๏ธ
๐ฐ Source: Coinpedia
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๐ธ Crypto Market Reaction โ Volatility Unleashed! โก
Just before the CPI data dropped, Bitcoin surged to $105,700, but quickly slipped below $103,000 as traders rushed to lock in profits. ๐ Altcoins like Ethereum, Solana, and Dogecoin also experienced pullbacks.
According to Santiment, trader behavior showed that many expected a drop after the data release. Despite this, some analysts believe any short-term dip may be a buying opportunity, especially if macro conditions remain supportive. ๐ง
๐ฐ Source: FXStreet
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๐ฎ Whatโs Next for Crypto? ๐ฆ
The market is now watching:
๐ Upcoming PCE inflation data
๐ FOMC minutes
๐งพ Potential new tariffs from Trump
These events could add more volatility to the crypto space, depending on how they impact inflation expectations and Fed decisions. ๐
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๐ Quick Takeaways
โ
CPI came in slightly cooler than expected
๐ฐ Traders booked profits, causing a short-term dip
๐ Outlook remains cautiously bullish if macro trends stay favorable
#CryptoCPIWatch #TrumpTariffs