The U.S. Producer Price Index (PPI) dropped 0.5% in April 2025—the steepest decline since 2020—signaling that inflation pressures may be easing. This unexpected dip, along with softer Core CPI data, has fueled speculation that the Federal Reserve could implement its first interest rate cut of the year. Markets are now anticipating potential rate cuts in the second half of 2025. Such a shift in monetary policy could boost liquidity, weaken the U.S. dollar, and improve investor sentiment—creating favorable conditions for a potential crypto rally. Investors are closely watching upcoming Fed announcements and economic forecasts for confirmation.

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