#CryptoCPIWatch Inflation Eases, Crypto Markets React

The latest U.S. Consumer Price Index (CPI) data for April 2025 indicates a slight easing in inflation, with the CPI rising 0.2% from March and 2.3% year-over-year, slightly below economists’ forecasts. [1] This softer inflation, combined with a temporary 90-day pause in the U.S.-China trade war that includes significant tariff reductions by both countries, has lifted investor sentiment and risk appetite. [1]

In the crypto markets, Bitcoin (BTC) experienced a decline below 102,400 amid profit booking ahead of the CPI data release. [2] However, following the release, BTC rebounded, currently trading at approximately103,493, reflecting a modest increase. Ethereum (ETH) also showed resilience, with its price rising to around $2,549.

The easing inflation data has influenced market expectations on Federal Reserve rate cuts, with anticipated cuts reduced from over 100 basis points to 56 basis points for the year. [1] While the tariff pause is welcomed, analysts warn it does not significantly change the longer-term outlook as tariffs remain high by historical standards. As the macroeconomic landscape evolves, crypto investors are advised to monitor inflation trends and Federal Reserve policy decisions closely, as these factors continue to impact market dynamics.

#CryptoCPIWatch