Crypto equities surge as US inflation prints three-month cooling streak; 'catch-up rally' expected, analyst says

April’s Consumer Price Index fell to 2.3%, slightly below economists' expectations of 2.4%, while the Core CPI remained steady at 2.8%, matching forecasts.  The latest data — the first inflation figures reflecting the impact of "Liberation Day" — marked headline inflation at a four-year low and represented the third consecutive monthly decline.

David Hernandez, crypto investment specialist at 21Shares, said the report suggested that "the economy may be holding strong" amid tariff-induced price pressures.

"The Federal Reserve's target inflation rate of 2% appears increasingly within reach, potentially influencing upcoming rate decisions." Hernandez said via email. "Odds of a rate cut at the June FOMC meeting still favor a pause."

Catch-up rally

Following the inflation data, crypto-related equities surged at Tuesday’s U.S. market open, driven by softer inflation numbers and easing economic strain. Coinbase (ticker COIN) rose 16% to $240 per share and led the blockchain stock rally, according to data from Yahoo Finance . The uptick continued COIN’s momentum from May 12, when news broke that Coinbase would join the S&P 500 .

Shares of other crypto-focused companies, such as Bitcoin miners Marathon Digital and Riot Platforms, also rose, alongside broader gains in U.S. stock indices such as the S&P 500 and Nasdaq.

Conversely, the cryptocurrency market fell 3.4% on May 13 due to profit-taking. Bitcoin slipped to $103,200 while Ether held $2,540. Majors like XRP, BNB, and SOL shed gains from the previous day, with the GMCI 30 Index down nearly 1%, per The Block’s indices page .

Aurelie Barthere, principal research analyst at Nansen, told The Block that Tuesday's inverse price action between crypto and equities may indicate a "catch-up rally" to pre-tariff escalation levels for blockchain stocks. She argued that the recovery might even include altcoins despite the most recent downturn.

"Bitcoin is already trading close to its all-time highs,” Barthere said. "However, with the latest easing in trade tensions, it appears that altcoins, crypto and U.S. equities, and the U.S. dollar (DXY) are well-positioned for a catch-up rally."

The Nansen analyst opined that the greenback may strengthen against so-called safe-haven currencies, which may briefly stall BTC’s march to an all-time high.