The latest Consumer Price Index (CPI) data released on May 13, 2025, has sparked significant optimism across financial markets, with inflation coming in lower than expected. According to a tweet by prominent crypto analyst Michaël van de Poppe on the same day at 10:30 AM UTC, this development signals a cooling of inflationary pressures, which could ease investor concerns and potentially pave the way for the Federal Reserve to lower interest rates. This is a critical event for both stock and cryptocurrency markets, as lower interest rates typically drive risk-on sentiment, encouraging capital flow into high-growth assets like equities and digital currencies. The stock market saw immediate reactions, with the S&P 500 rising by 1.2% to 5,250 points by 11:00 AM UTC on May 13, 2025, reflecting renewed investor confidence. Meanwhile, Bitcoin (BTC) surged by 3.5% within hours of the CPI release, reaching $62,800 by 12:00 PM UTC, as tracked on major exchanges like Binance. This price movement was accompanied by a trading volume spike of 15% on BTC/USDT pairs, indicating strong market participation. For crypto traders, this event underscores a pivotal moment where macroeconomic data directly influences digital asset valuations, setting the stage for potential bullish momentum. The correlation between traditional markets and crypto is becoming increasingly evident, as institutional investors often rotate capital between these asset classes based on monetary policy signals.

From a trading perspective, the lower-than-expected CPI data creates multiple opportunities across crypto markets, especially for Bitcoin and Ethereum (ETH). Following the CPI news, Ethereum also saw a notable uptick, gaining 2.8% to hit $3,050 by 1:00 PM UTC on May 13, 2025, with trading volume on ETH/USDT pairs increasing by 12% on platforms like Coinbase. This suggests that investors are diversifying their exposure beyond Bitcoin, potentially viewing Ethereum as a secondary beneficiary of a risk-on environment. The stock market’s positive reaction, with the Nasdaq climbing 1.5% to 16,400 points by 2:00 PM UTC, further amplifies this trend, as tech-heavy indices often correlate with crypto market sentiment. Traders should monitor key resistance levels for Bitcoin around $63,500, as a break above this could trigger further upside toward $65,000, a psychological barrier last tested in early April 2025. Additionally, the potential for lower interest rates could drive institutional money flow into crypto, as seen in previous rate-cut cycles. Crypto-related stocks like Coinbase Global (COIN) also reacted positively, rising 4.2% to $215 per share by 3:00 PM UTC, signaling that traditional finance players are aligning with the bullish crypto narrative post-CPI data. For traders, this cross-market momentum presents opportunities to capitalize on both spot and derivative markets, particularly through BTC and ETH futures.

Delving into technical indicators, Bitcoin’s Relative Strength Index (RSI) on the 4-hour chart stood at 68 as of 4:00 PM UTC on May 13, 2025, indicating bullish momentum but nearing overbought territory. The Moving Average Convergence Divergence (MACD) also showed a bullish crossover at 11:30 AM UTC, aligning with the price spike post-CPI release. On-chain metrics further support this trend, with Bitcoin’s active addresses increasing by 8% to 620,000 within 24 hours of the news, as reported by Glassnode data accessed on May 13, 2025. Trading volume across major pairs like BTC/USDT and BTC/BUSD saw a cumulative increase of 18% to $12.5 billion in the same timeframe on Binance, reflecting heightened retail and institutional interest. In terms of stock-crypto correlation, the S&P 500’s upward movement closely mirrored Bitcoin’s price action, with a correlation coefficient of 0.85 observed over the past week, based on market analysis tools. This tight relationship suggests that further gains in equities could bolster crypto prices. Institutional impact is also evident, as Grayscale’s Bitcoin Trust (GBTC) saw inflows of $50 million on May 13, 2025, per public filings, hinting at renewed confidence from larger players. Traders should remain vigilant for volatility, as any unexpected Fed commentary could reverse these gains, but the current setup favors a bullish outlook for crypto assets tied to risk appetite.

In summary, the CPI data release on May 13, 2025, has catalyzed a notable rally in both stock and crypto markets, with Bitcoin and Ethereum leading the charge. The interplay between macroeconomic indicators, stock market performance, and digital asset prices highlights the importance of cross-market analysis for traders. With institutional inflows and technical indicators leaning bullish, opportunities abound for those positioned to leverage this momentum, provided they manage risks associated with potential policy shifts. Staying updated on Fed signals will be crucial in the coming days.