Bitcoin (BTC) Price Remains Stable After US CPI Data Shows Inflation Is Cooling

Bitcoin (BTC) remained largely stable after the release of the US Consumer Price Index (CPI) for April 2025, which came in below expectations.

U.S. Consumer Price Index (CPI) for April 2025 rose 0.2% month-over-month (m/m), slowing from the previous period and coming in below economists’ expectations, according to the Bureau of Labor Statistics on Wednesday.

The report showed that CPI fell 0.1% in March. Economists had forecast a 0.3% increase in April CPI.

The report showed that year-over-year (y/y) CPI rose 2.3%, the slowest annual increase since February 2021. Economists had expected a 1.4% y/y increase in April CPI, following a 1.5% rise in the previous period.

Core CPI, which excludes volatile food and energy prices, rose 0.2% m/m, compared to 0.1% in March and below economists’ predictions of 0.3%. This was also in line with expectations, following a 0.1% rise in the previous period.

On a y/y basis, Core CPI remained at 2.8%, aligning with economists’ estimates and following a 2.7% increase in the previous month.

A lower-than-expected reading on inflation could support the Federal Reserve’s cautious “wait and watch” stance on cutting interest rates, which reached 5.0% in March 2025.

Despite the positive macro backdrop, Bitcoin (BTC) showed minimal reaction. At the time of writing, BTC is trading in the low $100,000 range – approximately 5.1% below its all-time high (ATH) of $108,786 set in January 2025.

However, technical analysts remain optimistic. Noted crypto analyst Titan of Crypto shared the following chart indicating a potential move to new all-time highs, driven by a strengthening weekly Relative Strength Index (RSI).

Moreover, crypto analyst Jelle commented on BTC’s resilience around the $102,000 level, suggesting this may act as a strong support zone. “Not much is left to hold BTC back now,” the analyst stated, indicating confidence in a continued rally.

BTC Exchange Reserves Depleting, Investors Accumulating

On-chain data also supports a bullish outlook. Crypto influencer Davinci Jeremie highlighted in a recent X post that Bitcoin reserves on centralized exchanges have dropped significantly and are now around 2.4 million BTC – a level that could contribute to a looming supply shock.

Lower BTC reserves on crypto exchanges are likely to bolster the supply shock narrative for the flagship cryptocurrency, which may lead to parabolic price action. Data also shows that large investors are accumulating BTC.

In a separate X post, crypto analyst Bitcoin Munger shared the following chart which shows that BTC sharks – wallets holding 100 to 1,000 BTC – have been accumulating BTC at a rapid pace. Currently, these entities hold more than 3.55 BTC collectively.

However, recent data shows that open interest has not risen in tandem with the rise in BTC price, which may be a cause for concern.

At press time, BTC is trading at $103,311, up a modest 0.1% over the past 24 hours.