#CryptoCPIWatch

Official data from the Bureau of Labor Statistics announced on the evening of (13/05/2025) showed that US inflation in April 2025 fell to 2.3% on an annual basis (YoY), the lowest level since February 2021. This figure was lower than market expectations of 2.4%, and marked a decline in inflation for three consecutive months .

The CPI drop reinforced speculation that the Federal Reserve will soon cut interest rates . The probability of the federal funds rate remaining at 4.50% at the June meeting fell from 91.8% to 88.6% , according to the CME FedWatch forecast tool, reflecting market expectations that a rate cut could come sooner than expected .

US President Donald Trump has even called for the Fed to cut interest rates immediately, arguing that new tariffs on Chinese imports are starting to impact the domestic economy . However, Jerome Powell has stressed that the Fed's decisions will still depend on data, not political pressure.

Decreasing inflation is usually a positive signal for crypto assets because:

Low interest rates = low cost of capital ? more aggressive investors

US dollar weakens ? demand for hedge assets like BTC rises

Risk sentiment strengthens ? altcoins also tend to be boosted

However, it is important to note: in previous cases, CPI surprises have actually triggered short-term profit-taking , especially by institutional investors. This has led to higher crypto volatility in the next 24–48 hours .