#CryptoCPIWatch The U.S. Consumer Price Index (CPI) report for April 2025, released on May 13, revealed that inflation cooled more than expected, with annual CPI rising 2.3%—below the forecasted 2.4%—and core CPI holding steady at 2.8%. This softer inflation data has influenced market expectations regarding Federal Reserve interest rate cuts, with anticipated cuts reduced from over 100 basis points to 56 basis points for the year.
In response, Bitcoin (BTC) experienced a modest uptick, rising to approximately $103,930, while Ethereum (ETH) increased to around $2,699. These movements reflect cautious optimism in the crypto markets, as traders interpret the cooling inflation as a potential signal for a less aggressive monetary policy stance by the Fed.
However, it's important to note that while the CPI data suggests easing inflation, ongoing trade tensions and tariffs, particularly those affecting imports from China, may still exert upward pressure on prices in the coming months. As such, investors should remain vigilant, as the interplay between inflation trends and monetary policy will continue to influence crypto market dynamics.
