Bitcoin and major altcoins remained largely flat after the latest U.S. inflation report showed a slight cooling in price growth.
U.S. Inflation Slows Slightly
The Consumer Price Index, which measures price changes across the economy, rose by 2.3% in April compared to a year earlier. This is slightly down from 2.4% in March, according to the U.S. Bureau of Labor Statistics.
Sponsored
Respectively, this was the slowest pace of price growth since February 2021. Experts say the full impact of President Donald Trump’s tariffs hasn’t yet been felt by consumers.
The latest inflation report comes after the Federal Reserve kept interest rates steady at 4.25%-4.50% for the fourth consecutive meeting, despite Trump’s calls for cuts.
Fed Chair Jerome Powell stated the impact of tariff hikes is still uncertain, but emphasized that the Fed’s decisions are focused on job growth and price stability.
Crypto Market Stays Flat
Despite the relatively positive U.S. inflation report, the crypto market remained relatively flat.
The total market capitalization dropped by 0.48% over the last 24 hours, now sitting at $3.32 trillion. Major cryptocurrencies like Bitcoin and Ethereum saw up to 1-2% movements, with prices around $103.2K and $2.54K, respectively, according to CoinMarketCap.
Top 10 crypto price fluctuations in the last 24 hours. Source: CoinMarketCap
The biggest movement was seen in Dogecoin (DOGE), which dropped 4.34%, falling to $0.226. Cardano (ADA) and Tron (TRX) also lost more than 3% each.
Despite this, the Crypto Fear and Greed Index remains at 70, indicating the market is still in the “greed” zone following last week’s surge, especially driven by Ethereum’s 20% daily rally.
On the flipside
- Many investors may have already priced in expectations of inflation slowing down, as it has been a key theme in recent months. The news might not have come as a surprise to the market.
- While inflation cooled, there’s still uncertainty over the long-term effects of Trump’s tariffs on the broader economy, which is clouding investor sentiment.
Why This Matters
The inflation rate report reflects the overall health of the economy. A slower rise in inflation suggests that price increases are under control, which can lead to more stable purchasing power. Understanding inflation trends helps make better financial decisions.
Discover DailyCoin’s top crypto news:
Curve Finance Site Hijacked in DNS Attack, Users Urged to Stay Away
HBAR, XRP Erupt: SWIFT Drops Bombshell Crypto Wallet News
