#CryptoCPIWatch

The April 2025 U.S. Consumer Price Index (CPI) shows inflation is proving sticky, with headline CPI rising 0.3% month-over-month and 2.4% year-over-year. Core CPI, which excludes volatile food and energy prices, also rose 0.3% on the month and stands at 2.8% annually. These numbers suggest inflation is not cooling as quickly as hoped. Price pressures remain due to global supply chain issues and the effects of tariffs on imported goods.

For crypto markets, this translates to heightened uncertainty. Bitcoin recently dipped below $102,400 amid profit-taking, with traders cautious ahead of the CPI data. Persistent inflation dims hopes for near-term interest rate cuts by the Federal Reserve, dampening risk appetite. As a result, crypto assets may face short-term volatility. However, if inflation stays elevated, crypto could regain its role as a hedge against fiat devaluation, depending on broader macro sentiment.