What’s the Impact on Crypto Market?
The U.S. Bureau of Labor Statistics (BLS) has just released figures for January 2025 Consumer Price Index (CPI). These statistics provide us with key insights into inflation trends, potential shifts in monetary policy, and direct impacts on financial markets such as financial markets.
If you don’t beat the bushes, let’s dig straight into the details and see how the cryptocurrency market reacts.
CPI data: Are the numbers consistent with expectations?
According to the latest figures released by the Bureau of Labor Statistics (BLS), CPI rose by 0.1% in January 2025, while Wall Street’s forecast was 0.3%. When it comes to year-on-year, inflation is 2.9%. That being said, the core of CPI does not include food and energy prices, accounting for 3.3% from the previous 3.2% core, which is 2% away from the Fed’s target.
The amount of these inflation, from comments from Fed Chairman Jerome Powell, and any new updates to the Trump administration’s tariffs will play a key role in determining the direction of U.S. interest rates.
How is the crypto market reaction?
The crypto market reacted negatively to the published numbers. Although the total market value of the business changed by -1.6%, the difference in intraday trade volume was +3.93%. Talking about leading cryptocurrencies Bitcoin, Ethereum and XRP, BTC prices have changed by -2.74%. ETH was -3.27%, and the change in XRP was -2.45%.
Crypto supporter Michael van de Poppe X Posts The citation market will take time to recover after a massive surrender last week. After some small consolidation and lateral trends, he was optimistic about the gradual rise in crypto prices.
FAQ
The consumer price index for January 2025 is 3%.
The basis for calculating CPI is the price change of the project sample measured by its importance. This is the price estimate for the whole month, not a specific date.
CPI (Consumer Price Index) measures the average price change that consumers pay for goods and services, while PPI (Producer Price Index) tracks price changes at the wholesale level before reaching consumers.
