$BTC
The US Consumer Price Index (CPI) report was released today at 15:30, and the actual inflation rate came in at 2.3%, below the expected 2.4%.
This is the best-case scenario for the market, especially for risk assets like Bitcoin and Altcoins, as lower-than-expected inflation increases the likelihood of interest rate cuts this year.
—: Market Reaction
- The US Dollar Index dropped 0.25% to 101.53
- The market is likely to rise due to the overall bullish sentiment
- Lower inflation rates can lead to increased investor confidence and higher market performance
—: Possible Scenarios
- Scenario 1: CPI above 2.4% - Negative for markets in the short term, potentially delaying interest rate cuts
- Scenario 2: CPI at 2.4% - Market likely to rise due to overall bullish sentiment
- Scenario 3: CPI below 2.4% - Best-case scenario, driving Bitcoin and Altcoins higher due to increased likelihood of rate cuts
Given the actual CPI rate of 2.3%, Scenario 3 has played out, potentially driving up the market and risk assets. Core CPI rose 2.8% year-over-year, matching March's print and analysts' estimates.
