Today, the number #CryptoCPIWatch was issued at 15:30, and the actual inflation rate stood at 2.3%, which is lower than the expected rate of 2.4%. This is the optimal scenario for the market, especially for high-risk assets such as Bitcoin and alternative cryptocurrencies, as a lower-than-expected inflation rate increases the likelihood of interest rate cuts this year. *Market Reaction:*
- The US Dollar Index fell by 0.25% to reach 101.53.
- The market is likely to rise due to the overall upward trend.
- A decrease in inflation rates may boost investor confidence and improve market performance.
*Potential Scenarios:*
- Scenario 1: Consumer Price Index rises by 2.4% - negative impact on markets in the short term, which could delay interest rate cuts.
- Scenario 2: Consumer Price Index decreases to 2.4% - the market is likely to rise due to the overall upward trend.
- Scenario 3: Consumer Price Index drops below 2.4% - at best, the price of Bitcoin and alternative cryptocurrencies will rise due to increased likelihood of interest rate cuts.
- Given the actual Consumer Price Index rate of 2.3%, Scenario 3 may have occurred, which could lead to a rise in the market and high-risk assets. The core Consumer Price Index rose by 2.8% year-on-year, matching the March reading and analyst estimates.¹