Despite a promising Consumer Price Index (CPI) report showing a decline in US inflation, both Bitcoin and US stocks experienced significant drops on April 10, 2025. The CPI data for March revealed a year-over-year increase of 2.4%, lower than the expected 2.5%, with core inflation at 2.8%, marking the smallest annual increase in four years.
The US Bureau of Labor Statistics noted that the all-items index rose 2.4% over the past year, down from February’s 2.8%, while the core index, excluding food and energy, increased by 2.8%. This positive inflation data typically supports risk assets like cryptocurrencies and stocks. However, the market reaction was unexpectedly negative.
Bitcoin’s price, which had surged following the US decision to pause most tariffs for 90 days, saw volatility around the CPI release. It briefly spiked before falling back to around $81,500, reflecting a mixed response to the economic news.
US stocks also suffered, with the S&P 500 and Nasdaq Composite Index declining by 3% and 3.7%, respectively. Analysts attributed this downturn to ongoing concerns about the trade war, despite the encouraging inflation figures. The market sentiment suggests that investors are more focused on future economic challenges, particularly the impact of tariffs, rather than current positive data.
The Federal Reserve’s goal to bring inflation down to 2% remains a key factor in monetary policy decisions. With inflation now closer to this target, there is speculation about potential interest rate adjustments, which could influence both stock and crypto markets.
In the crypto space, traders are watching key levels for Bitcoin, such as reclaiming $83,000, to signal a potential rebound. Meanwhile, large-volume traders continue to influence Bitcoin’s price action. Analysts highlight the role of significant market players in shaping Bitcoin’s trajectory, particularly in times of volatility.
Overall, despite the positive inflation data, market volatility persists, driven by broader economic uncertainties and geopolitical tensions.
