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Last night, CPI numbers were released—and they came in softer than expected. Both core and headline CPI monthly figures posted a 0.2% rise, under the 0.3% forecast, while yearly CPI dropped to 2.4%. This marked the third consecutive month of falling inflation, giving risk-on assets a welcome boost.
The data even prompted Trump to fire off another social post, demanding Powell cut interest rates, arguing that current levels are unfair to Americans. Despite the softer CPI and recent US-China trade progress, markets are still pricing in just two rate cuts for 2025, with the first now expected in September.
Markets in the Green, Sentiment Turns Greedier
The falling CPI lit a fire under risk assets. Bitcoin, the S&P 500, Nasdaq, and even gold all closed higher on the day. With sentiment continuing to improve, the Bitcoin Fear & Greed Index now sits at 73, while the S&P 500 reading is at 66—both firmly in "greed" territory and edging towards "extreme greed."
Ethereum Steals the Show
But the star of the show hasn’t been Bitcoin—it’s Ethereum. Over the past 12-18 months, Ethereum has been the market’s biggest disappointment. While Bitcoin pushed to fresh all-time highs and Solana followed suit, Ethereum lagged behind, underperforming nearly every major cryptocurrency.
That narrative has flipped over the last five days. Ethereum is up over 90% since April 9 and, more notably, has outperformed Bitcoin by 40% during this recent run. This surge could signal a major trend reversal in Ethereum’s long-standing underperformance against Bitcoin.
Despite this explosive move, Ethereum is still down 20% year-to-date. However, the recent price action feels like the start of something more meaningful for Ethereum holders.
Stormrake Spotlight: Bittensor (TAO) ($459)
Stormrake Spotlight: Bittensor (TAO) ($459)
Bittensor (TAO) continues its sideways consolidation, closing up 1.20% on the day after yet another bounce off the CPR level at $440. This post-impulse consolidation is textbook behaviour and presents a solid accumulation opportunity ahead of the next leg up. The immediate target zone remains $525-$553.
BTC/USD Key Levels and Price Action:
BTC/USD Key Levels and Price Action:
The bears had a fleeting moment of control, but bulls quickly reclaimed momentum, retaking the key $104k level. Bitcoin once again found support at the CPR of $101.8k before rallying above both the 21 and 55 EMA. BTC is now battling to hold above $104k—success here opens the door to retesting the all-time high around $109k.
BTC Total ETF Flows for 13 May: - 91.4 million
(ETF flow data is sourced from https://farside.co.uk/btc/ and reflects figures at the time of writing.)
*All prices are denominated in USD unless stated otherwise*
Written by Alexandar Artis
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