Bitcoin’s price rose to $104,014.5 on May 16, 2025, buoyed by softer-than-expected U.S. inflation data, which heightened expectations of potential interest rate cuts by the Federal Reserve. The cryptocurrency’s recent rally underscores investor optimism in the face of macroeconomic shifts.
The U.S. Producer Price Index (PPI) for April showed an unexpected decline, marking the sharpest drop in service costs since 2009. This, coupled with earlier Consumer Price Index (CPI) data indicating subdued inflation, suggests easing price pressures in the economy. Such developments often lead to a weaker U.S. dollar, making alternative assets like Bitcoin more attractive to investors.
However, the broader crypto market remained cautious. Major altcoins like Ethereum and XRP experienced modest movements, reflecting a mixed sentiment among investors.
