#CryptoCPIWatch #TradeLessons #Binance
From a trading perspective, the CPI release at 8:30 AM ET on May 13, 2025, presents significant opportunities and risks for crypto traders. A higher-than-expected inflation figure could pressure Bitcoin and Ethereum prices downward, as investors may rotate out of risk assets into safer havens like bonds or cash. For instance, during the last CPI release on April 10, 2025, when inflation came in at 3.5% year-over-year against expectations of 3.4%, BTC dropped 2.1% within four hours, from $69,000 to $67,550 on Binance at 12:30 PM ET. Conversely, a lower-than-expected CPI could fuel a short-term rally, as seen on March 14, 2025, when a softer 3.2% reading pushed BTC up 3.8% from $71,200 to $73,900 by 2:00 PM ET. Traders should monitor key BTC/USD support at $60,000 and resistance at $63,000, alongside ETH/USD levels at $2,900 support and $3,100 resistance, as these could be tested post-release. Additionally, cross-market correlations suggest that a sharp move in the S&P 500 or Nasdaq, often seen immediately after CPI data, could amplify volatility in crypto pairs. Institutional flows are another factor; a risk-off move in stocks could see reduced inflows into crypto ETFs like the iShares Bitcoin Trust (IBIT), which saw a net outflow of $12 million on May 8, 2025, per Bloomberg data.Bitcoin hardware walletMetaverse virtual real estate.
Technical indicators and volume data further underscore the importance of the CPI release for crypto markets. As of May 9, 2025, at 11:59 PM ET, Bitcoin’s Relative Strength Index (RSI) on the 4-hour chart was at 48, signaling neutral momentum, while the Moving Average Convergence Divergence (MACD) showed a bearish crossover, hinting at potential downside if negative news hits. Ethereum’s RSI stood at 46 with similar bearish MACD signals on the same timeframe. Trading volume for BTC/USD on Coinbase spiked by 15% to $4.2 billion in the 24 hours leading up to May 9, 2025, reflecting heightened trader activity ahead of the event, according to CoinGlass.
