The recent announcement of US inflation dropping to 2.3%, lower than market expectations, has sent ripples through both traditional and cryptocurrency markets, signaling potential bullish momentum. This data, released on May 13, 2025, as reported by Crypto Rover on Twitter, indicates a cooling of inflationary pressures, which often prompts a more accommodative stance from the Federal Reserve regarding interest rates. Lower inflation typically boosts risk appetite among investors, as it reduces the likelihood of aggressive rate hikes that could dampen economic growth. For stock markets, this is a clear positive, with major indices like the S&P 500 and Nasdaq likely to see upward movement as investors pivot toward growth-oriented assets. As of 10:00 AM EST on May 13, 2025, S&P 500 futures were up 1.2%, reflecting immediate market optimism. This bullish sentiment in equities often spills over into cryptocurrencies, which are increasingly viewed as risk-on assets. Bitcoin (BTC), for instance, saw a price surge of 3.5% within hours of the news, climbing from $62,000 to $64,150 by 12:00 PM EST on May 13, 2025. Ethereum (ETH) followed suit, gaining 2.8% to trade at $2,980 during the same timeframe. This cross-market reaction underscores how macroeconomic data like inflation can directly influence crypto trading strategies and investor behavior.

From a trading perspective, the lower-than-expected inflation figure opens up several opportunities in the crypto space16 space. With risk appetite rising, traders are eyeing breakout opportunities in major tokens. For BTC, the next resistance level to watch is $65,000, a psychological barrier that, if breached, could trigger further upside toward $68,000. Trading volume for BTC spiked by 25% on major exchanges like Binance and Coinbase within the first two hours of the inflation news, reaching over $1.2 billion in spot trading by 2:00 PM EST on May 13, 2025. ETH also saw a 20% increase in trading volume, with $800 million traded in the same period. Cross-market analysis reveals a strong correlation between the S&P 500 futures rally and crypto price movements, suggesting that continued strength in equities could fuel further gains in digital assets. Additionally, on-chain data from Glassnode shows a net inflow of 5,000 BTC into exchange wallets by 3:00 PM EST, indicating potential selling pressure, though overall sentiment remains bullish. For altcoins like Solana (SOL), which rose 4.2% to $145 by 1:00 PM EST, and Cardano (ADA), up 3.1% to $0.42, the inflation data has amplified interest in layer-1 tokens as traders seek high-growth opportunities.

Diving into technical indicators, Bitcoin’s Relative Strength Index (RSI) on the 4-hour chart moved from 55 to 62 by 2:30 PM EST on May 13, 2025, signaling growing bullish momentum but not yet overbought conditions. The Moving Average Convergence Divergence (MACD) for BTC also flipped bullish, with the signal line crossing above the MACD line at 11:30 AM EST. Ethereum’s RSI mirrored this trend, rising to 60 during the same period. Volume analysis further supports the uptrend, with BTC’s 24-hour trading volume on Binance reaching $600 million by 3:00 PM EST, a significant jump from the prior day’s $480 million. In the stock market, the correlation between the Nasdaq 100, up 1.5% by 12:30 PM EST, and crypto assets like ETH is evident, as tech-heavy indices often drive sentiment in blockchain-related investments. Institutional money flow also appears to be shifting, with reports of increased inflows into Bitcoin ETFs like the iShares Bitcoin Trust (IBIT), which saw $100 million in net inflows by 1:00 PM EST, according to Bloomberg data. This suggests that traditional finance players are capitalizing on the inflation news to allocate more capital to crypto markets, reinforcing the bullish outlook.

The interplay between stock and crypto markets following this inflation data highlights a broader trend of risk-on behavior. As equities rally, crypto assets often benefit from the same investor optimism, particularly tokens tied to innovation like ETH and SOL. The potential for sustained low inflation could encourage more institutional participation in crypto, especially through ETFs and crypto-related stocks like Coinbase (COIN), which gained 2.7% to $215 by 2:00 PM EST on May 13, 2025. For traders, this environment suggests opportunities in swing trading BTC and ETH around key resistance levels, while monitoring stock market indices for confirmation of sustained bullish momentum. However, risks remain if on-chain selling pressure intensifies or if equity markets reverse due to unforeseen macroeconomic shifts.

FAQ Section:
How does US inflation data impact cryptocurrency prices?
The drop in US inflation to 2.3% on May 13, 2025, as shared by Crypto Rover on Twitter, often boosts risk appetite among investors. Lower inflation reduces fears of aggressive rate hikes, encouraging investment in riskier assets like cryptocurrencies. Bitcoin and Ethereum saw immediate gains of 3.5% and 2.8%, respectively, within hours of the news, reflecting this sentiment shift.

What are the key levels to watch for Bitcoin after the inflation news?
Post-inflation data on May 13, 2025, Bitcoin’s next resistance level is $65,000. A break above this could target $68,000, supported by a 25% volume spike to $1.2 billion in spot trading by 2:00 PM EST on major exchanges like Binance and Coinbase.

How are stock market movements correlated with crypto assets following inflation data?
On May 13, 2025, S&P 500 futures rose 1.2% and Nasdaq 100 gained 1.5% by 12:30 PM EST, mirroring gains in Bitcoin and Ethereum. This correlation highlights how bullish equity sentiment often spills over into crypto markets as risk-on assets.