Why is the CPI lower than expected, and both Bitcoin and US stocks are rising? A simple understanding:
CPI (Consumer Price Index) is lower than expected ↓
➽ Inflation pressure eases ↓
➽ Expectations of interest rate hikes weaken ↓ / Expectations of interest rate cuts rise ↑
➽ (Bond/Deposit yields + Risk aversion sentiment) decline ↓
➽ Demand for risk asset investments increases ↑
➽ Prices of risk assets rise 📈
This is the simplest intuitive understanding; investing is a very complex matter with many factors affecting market trends, and there is also some randomness. In short, hold onto Bitcoin spot, brothers!
