Breaking News: April's Core Inflation Hits a Low Not Seen Since 2021, Sparks Hope for Bitcoin!

Hold onto your hats, crypto fans! April's core inflation just clocked in at a cool 2.5% year-over-year, the lowest it's been since March 2021. This is huge news for Bitcoin!

Get this: the Federal Reserve's favorite way to measure inflation just hit the floor at its lowest since March 2021, sending positive vibes straight to Bitcoin's (BTC) price. April's core personal consumption expenditures price index dropped the bomb on Friday, May 30, landing right at 2.5%. Right on the money with expectations and a sweet drop from March's 2.7%.

Core inflation? That's right, we're talking numbers without the wild swings of food and energy prices. And guess what? Even with those included, April's inflation numbers are chillin' lower than March's. Overall, consumer prices only bumped up 2.1% in April from last year, down from March's 2.3%.

Here's the kicker: those U.S. tariffs on big trading partners? They still haven't hit the average Joe's wallet. That's a win for the Fed, keeping their eyes peeled to keep inflation near their 2% sweet spot.

But don't get too comfy. Both traders and the Fed are sweating over those tariffs potentially cranking up inflation. Month to month, both core and overall prices just nudged up 0.1% from March to April. Yet, durable consumer goods prices? They jumped 0.5%—could be the first hint of Trump's tariffs flexing their muscles.

What low inflation means for Bitcoin

Here's the deal: traders often see Bitcoin as their shield against inflation, but the Fed's moves on rising prices can throw a wrench in BTC's plans. Bitcoin and other major crypto tokens? They thrive in the high-liquidity party that low interest rates bring.

When inflation goes wild, the Fed cranks up interest rates to cool things down. Right now, they're playing it cool, not rushing into any cuts. That's a buzzkill for both stocks and crypto. But if inflation stays low? The Fed might feel the heat to lower rates, setting the stage for Bitcoin's next big rally.