Crypto CPI Watch: Bitcoin's Volatile Dance with Inflation Data
Bitcoin (BTC) experienced notable volatility on May 13, 2025, as traders reacted to the latest U.S. Consumer Price Index (CPI) report. The annual inflation rate cooled to 2.3%, slightly below the anticipated 2.4%, marking the lowest level since February 2021.
In the lead-up to the CPI release, BTC dipped below $103,000 due to profit-taking after a recent rally. Following the inflation data, Bitcoin briefly surged to approximately $103,645, as traders speculated on a potential Federal Reserve policy shift.
Despite this uptick, Bitcoin's price remains sensitive to broader macroeconomic factors, including ongoing tariff discussions and monetary policy decisions. Analysts suggest that while the CPI data provided a temporary boost, sustained momentum will depend on future economic indicators and policy responses.
As of now, Bitcoin is trading at approximately $104,133, reflecting the market's cautious optimism amid evolving economic conditions.
#
