Anand Sinha
1 min read
The crypto market cap reached $3.4 trillion as the Consumer Price Index (CPI) in April hit 2.3% over the last 12 months, the Bureau of Labor Statistics reported on May 13.
As per Kraken's price feed, Bitcoin was trading at $103,711 at press time. Meanwhile, Ethereum was trading at $2,523.10 at press time.
April's inflation rate of 2.3% came lower than the expected figure of 2.4%. The CPI rose 0.2% on a seasonally adjusted basis during the month.
While the energy index rose 0.7% in April, the shelter index rose 0.3%. On the other hand, the food index dipped 0.1%.
Core CPI, excluding food and energy prices, stood at 2.8% in April year-over-year (YoY). The figure grew 0.2% during the month.
In contrast, the CPI and core CPI stood at 2.4% and 2.8% in March.
Remember that President Donald Trump hiked tariffs on all countries on Apr. 2 before freezing them for all except China for 90 days on Apr. 9.
It was widely anticipated that the decision would lead to a rise in inflation. However, the decline in inflation has defied such expectations.
Note that the Federal Reserve has set an inflation target of 2%. Though Trump has repeatedly pressed Fed Chair Jerome Powell to slash interest rates, the central bank has not indicated rate cuts anytime soon.
We will keep a close watch on the inflation figures of the upcoming months and observe if the Fed will change the course of its action.
As the macroeconomic factors increasingly affect the crypto market, a rate cut could lead to a potential market rally.
