$ETH Attention to the economic news from the United States: It turns out that in March, the prices of things people buy in their daily lives (like food, clothing, gasoline, etc.) fell more than experts expected. This is measured with an indicator called CPI, and it dropped to 2.4%.
This news is important because the Federal Reserve (also known as the Fed, which is like the central bank of the U.S.) is very attentive to how prices rise or fall. If prices rise too much (high inflation), the Fed may decide to raise interest rates to try to discourage people from spending so much, in order to control prices.
But now that prices have fallen more than expected, people are starting to think that perhaps the Fed does not need to keep interest rates so high, and it might even lower them in the future.
And why could this be relevant to the world of cryptocurrencies? Well, when interest rates are low, sometimes people look for other ways to invest their money that can give them more returns than leaving it in the bank. Some believe this could lead to more people being interested in investing in cryptocurrencies like Bitcoin or Ethereum.
However, some also think that this news does not necessarily mean that cryptocurrencies will rise, as there are many other factors that influence their price. That’s why the question many are asking is whether this drop in the CPI is good or bad news for cryptocurrencies. The debate is open! 😉