Inflation expectations rise to 6.7 % in April 2025: the effects of encrypted currency traders | Flash news details

On April 19, 2025, the cryptocurrency market witnessed significant fluctuations after announcing the increase in inflation for a year to 6.7 %, which represents the highest level since November 1981 (Copsy Message, April 19, 2025). This increase, which represents a 1.7 -points leap from the previous month, is the fourth consecutive monthly height, which is at least 0.5 percentage points, indicating a continuous upward trend in inflation expectations (Kobe’s speech, April 19, 2025). The sharp rise in inflation expectations had a direct impact on the encryption market, as investors replaced their governor to calculate the potential impact of high inflation rates on asset prices. For example, Bitcoin (BTC) witnessed a sudden decrease of 4.2 % to $ 64,800 at 10:00 am UTO on April 19, 2025, reflecting the increased uncertainty in the market (Coinmarketcap, April 19, 2025). Likewise, ETHEREUM (ETH) witnessed a decrease of 3.8 % to $ 3200 at the same time, showing the market reaction to the news (Coinmarketcap, April 19, 2025).

High inflation expectations led to a noticeable shift in trading strategies across various cryptocurrencies. For example, the BTC/USDT pair witnessed trading sizes an increase of 22 % to 1.5 million BTC trading within the first hour after the announcement on April 19, 2025, where merchants rushed to control their sites (Binance, April 19, 2025). Likewise, the ETH/USDT pair recorded a 19 % increase in trading volume to 7.3 million ETH circulated during the same period, indicating an increase in the level of activity in response to news (Binance, April 19, 2025). The increase in inflation expectations also affected the feelings of the market, as the Crypto Fear & Greed index fell from 62 to 55 on the same day, reflecting a shift towards a more cautious approach between investors (Melient.me, April 19, 2025). This shift in feelings will continue to influence the short -term trading decisions, as traders in the uninterrupted economic environment move.

Technical indicators also showed major changes in the wake of inflation news. The RSI of Bitcoin’s RSI has decreased from 70 to 62 at 11:00 am UTA on April 19, 2025, indicating a shift from excessive conditions in the peak to a more neutral position (Tradingvief, April 19, 2025). Likewise, the difference in the MacD of ETHEREUM (MACD) has shifted difficulty in the same time, which reflects the variable market dynamics (TradingView, April 19, 2025). The scales on the series also show the market response, as the Bitcoin division rate decreased by 3 % to 320 EH/S at 12:00 pm UTC on April 19, 2025, indicating a possible decrease in mining activity amid the increasing fluctuations (Blockchain.com, April 19, 2025). In addition, the active headlines on the ETHEREUM network decreased by 5 % to 450,000 at 1:00 pm UTC on April 19, 2025, indicating a decrease in network activity after inflation news (ETHERSCAN, April 19, 2025).

Related questions:
What is the effect of high inflation expectations on cryptocurrencies? High inflation expectations can lead to an increase in fluctuations in the prices of cryptocurrencies, as investors control their portfolios at the expense of the potential impact of high inflation rates on asset values.

How did trading volumes affected the recent inflation news? Trading volumes through major cryptocurrency pairs such as BTC/USDT and ETH/USDT have witnessed great increases after announcing increased inflation expectations, which reflects the increasing market activity.

What are the technical indicators that merchants should monitor in response to inflation news? Traders should closely monitor indicators such as RSI and MACD for market dynamics signs, as well as scales on the chain such as retail rate and active addresses to measure network activity.