Why did the positive CPI data lead to a sharp decline in cryptocurrency?
The recent cryptocurrency market has been hectic, with good and bad news coming in by the hour, and data indicators needing to be referenced in both directions and repeatedly verified.
For instance, today's CPI normally would have directly stimulated the Federal Reserve's interest rate cut expectations, but the market fell sharply at the same time.
The first reason is: the Nasdaq index plummeted by 6%, and BTC had to follow suit.
The second reason is: the CPI expectation value was too low, indicating that the market is currently facing deflation, which, while it may lead to a Federal Reserve rate cut, also signifies the onset of a recession.
Additionally, it's worth noting that China has been subjected to a 145% tariff.
Although this is a negative expectation that many anticipate, it is still worth considering; China's retaliatory stance may soon trigger another wave of decline!
