Bitcoin Price Surges Above $104K as April CPI Cools to 2.3%, Boosting Fed Rate-Cut Bets and Fueling Bullish Market Sentiment

Bitcoin moved sharply higher on Monday after the release of April's US Consumer Price Index (CPI). According to TradingEconomics data, US Consumer Price Index (CPI) increased to 320.80 points

Bitcoin price moved sharply higher on Monday morning after the release of April’s US Consumer Price Index (CPI).

According to TradingEconomics data, US Consumer Price Index (CPI) increased to 320.80 points in April from 319.8 points in March of 2025.

The annual inflation rate in the US eased to 2.3% in April 2025, the lowest since February 2021, from 2.4% in March and below forecasts of 2.4%.

Notably, annual inflation, which showed a year-over-year increase of just 2.1% attracted investors attention, as it reflected lowest increase in inflation recorded since 2021. This reinforced market expectations for a Federal Reserve policy rate cut during the next FOMC meeting.

Within two hours of the data release, BTC rose 2.9 % to $104,771 at press time, after plunging as low as $101,868 on Monday.

The move was accompanied by a 35% increase in Bitcoin spot volumes on Binance’s BTC/USDT pair.

TradFi market response was also visible as shares of Coinbase Global (NASDAQ:COIN) rose 5.3% in pre-market trading to $215, reflecting positive sentiment building up around cryptocurrency-related stocks. S&P 500 futures advanced 1.1% to 5,300, reflecting a synchronised recovery across global risk asset markets.

$68.6 billion BTC open interest re-inforces bullish dominances

BTC’s price action was supported by a decisive shift in derivatives markets, reflecting increasing bullish conviction from traders.

Open interest in Bitcoin futures rose by 2.38% to $68.57 billion. Options open interest increased by 2.50% to $39.89 billion.On Binance, the top trader long/short ratio reached 1.595. The broader market ratio stood at 0.9724, reflecting a clear directional tilt to the upside.

Liquidations trends recorded over the last 24 hours also confirm this bullish shift in short-term momentum. Since the CPI release, $84.61 million in leveraged positions were cleared.

Short positions accounted for $28.27 million of that total, with 81% of short liquidations occurring in the first hour. The CPI data caught a large portion of the market unhedged.

On the flip side, futures trading volume declined by 13.71% to $104.67 billion. Options volume also decreased by 9.64%.

This indicates that while bullish positions have been established, short-term traders are now cautiously watching for further macro confirmation before increasing leverage exposure further.

Looking Ahead: BTC Eyes $110,000 as Rate Cut Bets Firm Up

The combination of easing inflation, rising open interest, and strong spot demand points to a continued advance for Bitcoin.

Attention will now turn to upcoming comments from Federal Reserve Chair Jerome Powell and the release of FOMC minutes. Clarity on the central bank’s stance will be critical to validating the market’s current rate cut expectations.

For now, Bitcoin is benefiting from macro relief, rising trading volumes, and increasing capital inflows all currently align positively for BTC sustain its upward momentum towards new all time highs around $110,000.

Bitcoin Technical Price Analysis: Bulls Eye $110K As RSI Holds Firm

In today’s Bitcoin price analysis, the confluence of expanding Bollinger Bands, positive volume delta, and elevated RSI supports a bullish outlook toward the $110,000 mark.

As seen in the TradingView chart below, Bitcoin is currently trading at $104,560 after surging nearly 18% over the past 12-hour session. This signals a sudden and significant shift in bullish momentum following a period of consolidation.

More so, BTC price has cleanly broke above the mid-$100K range, with sustained closes above both the Bollinger Basis Band ($100,182) and the upper Envelope Band ($100,614). This action typically suggests strong directional conviction.

The Bollinger Bands are visibly widening, which is often an indication of upcoming volatile price movements, especially as candles are now pivoting at the upper band. A final close above the upper band, currently at $108,439, could further amplify bullish continuation potential.

Momentum strength is also emphasized by the Relative Strength Index (RSI) holding at 72.52, remaining above the 70 threshold, which is conventionally used to denote overbought conditions.

However, the RSI’s sustained elevation without divergence implies trend strength rather than exhaustion,