#CryptoCPIWatch

The latest U.S. Consumer Price Index (CPI) data for April 2025 revealed a softer-than-expected inflation increase, with a 0.2% rise from March and a 2.3% year-over-year rate, slightly below forecasts. This development has bolstered investor confidence, leading to a modest uptick in risk assets, including cryptocurrencies.

Bitcoin (BTC) experienced a brief dip below $102,400 due to profit-taking ahead of the CPI release but has since rebounded. As of now, BTC is trading at approximately $104,144, reflecting a 1.16% increase over the previous close.

The combination of easing inflation and a temporary 90-day pause in the U.S.-China trade war, which includes significant tariff reductions, has improved market sentiment. These factors have also influenced expectations regarding Federal Reserve rate cuts, with anticipated cuts for the year reduced from over 100 basis points to 56 basis points.

In summary, the softer CPI data and improved trade relations have positively impacted the crypto market, with Bitcoin showing resilience and potential for further gains.