On May 10, 2025, crypto equities and Bitcoin experienced an upward trend following the release of lower-than-expected U.S. inflation data.
The softer inflation data suggests a potential ease in monetary policies, enhancing investor confidence in risk assets like Bitcoin and equities, despite recent volatility.
U.S. April CPI Growth Just 0.2%
The recent U.S. Consumer Price Index (CPI) data showed a modest 0.2% rise in April 2025, lower than anticipated. This significant economic indicator reflects the slowest inflation rate since 2021, leading to positive movements in crypto markets.
Key players in the marketplace, including Bitcoin and Ethereum, saw considerable activity. Influential figures such as Federal Reserve Chair Jerome Powell have adopted a “wait-and-see” stance on how these numbers could affect future rate decisions.
Bitcoin Nears $104K on Inflation News
The response from the markets was immediate, with Bitcoin trading near $103,800 and Ethereum reaching $2,950. Institutional and retail investors interpreted the data as supportive of riskier assets, contributing to a noticeable upswing in trading volumes.
Analysts underscore the potential for a “catch-up rally” as past instances of subdued inflation have historically precipitated extended gains for cryptocurrencies and stocks. Still, caution remains due to external economic forces potentially altering this trajectory.
Past CPI Trends Favor Crypto Bullishness
Past CPI releases with below-expectation results have consistently led to rallies in risk assets. Both U.S. equities and major cryptocurrencies have benefited from such conditions, although geopolitical and trade variables can impact longevity.
Experts like Evan (@StockMKTNewz) reiterated that while the data supports a bullish outlook, unforeseen macroeconomic headwinds, including trade policies, may shift investor sentiment. This duality underlines the importance of maintaining a long-term perspective.
Evan via The Block emphasized the overarching influence of macroeconomic data on market movements:
“If the CPI data… comes in lower than the expected 3.4% YOY increase, it could fuel a risk-on sentiment, potentially driving BTC/USD above its key resistance… Conversely, a higher-than-expected CPI reading could trigger a risk-off environment…”
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