<\/p>\n
April core inflation data came in at 2.5% year-over-year, which is its lowest level since March 2021.<\/p>\n
The Federal Reserve\u2019s preferred inflation metric hit its lowest level since March 2021, giving a positive sign for Bitcoin\u2019s (BTC) price. April\u2019s core personal consumption expenditures price index, released<\/a> on Friday, May 30, came out at 2.5%. This was in line with expectations and lower than March\u2019s figure of 2.7%.<\/p>\n Core inflation excludes volatile prices of food and energy. However, even with these metrics included, April inflation readings were lower than those in March. Overall, consumer prices rose just 2.1% in April compared to the same month last year, down from 2.3% in March.<\/p>\n <\/p>\n Figures suggest that the effects of U.S. tariffs on its major trading partners still haven\u2019t trickled down to the consumer. This is a positive sign for the Federal Reserve, which has been keeping a close look on inflation, to keep it near its 2% target. <\/p>\n Still, both traders and the Fed remain concerned about the inflationary effects of tariffs. On a monthly basis, both core and overall prices rose just 0.1% from March to April. However, prices of durable consumer goods rose 0.5%, which may be an early sign of Trump\u2019s tariffs taking effect.<\/p>\n <\/p>\n While traders often see Bitcoin as a hedge against inflation, the Fed\u2019s likely reaction to rising prices has negative effects for BTC. Namely, both Bitcoin and major crypto tokens tend to react positively to the high-liquidity environment brought by low interest rates.<\/p>\nWhat low inflation means for Bitcoin<\/h2>\n