Crypto Market Pauses Ahead of U.S. April CPI Data Release

The cryptocurrency market has temporarily halted its upward trend as the U.S. prepares to release April's Consumer Price Index (CPI) data. According to Odaily, Bitcoin has been fluctuating between $80,000 and $82,000 without a significant breakthrough since last Wednesday. Despite potential for further gains indicated by fund flows, inflation and macroeconomic risks are dampening risk appetite. The U.S. is set to announce the April CPI at 8:30 PM (UTC+8). FactSet data suggests that the CPI is expected to rise to 3.7% year-on-year, up from 3.3% in March. If this prediction holds, it would mark the largest increase since January 2024, significantly above the 12-month average of 2.7%. Core CPI is anticipated to rise to 2.7% from the previous 2.6%. Analysts express concern that if inflation data exceeds expectations, it could heighten market risk aversion, especially with oil prices remaining high and U.S. President Donald Trump describing the U.S.-Iran ceasefire as "extremely fragile." Lukman Otunuga, Head of Market Research at FXTM, noted that the market is entering a sensitive phase where geopolitical, inflationary risks, and central bank expectations are intertwined. High oil prices, uncertainty in Iran, and key U.S. economic data could increase volatility in commodities, exchange rates, and global stock markets. Beyond macroeconomic factors, XRP and SOL are nearing critical supply zones. XRP tested $1.50 today but has repeatedly failed to break through this level since February. SOL is approaching resistance near $97. Meanwhile, institutional interest in related assets is rising. The U.S. spot XRP ETF recorded a net inflow of $25.8 million on Monday, the highest since January 5. Bitcoin and Solana ETFs also maintained net inflows, while the Ethereum ETF saw a net outflow of $16.9 million.