The US Consumer Price Index (CPI) report was released today at 15:30, showing an actual inflation rate of 2.3%, slightly below the forecasted 2.4%. This outcome is highly favorable for the market—particularly for risk assets such as Bitcoin and Altcoins—as it boosts the likelihood of interest rate cuts later this year.
Market Reaction:
The US Dollar Index fell by 0.25%, reaching 101.53
A bullish sentiment is expected to lift the market
Lower inflation supports investor confidence and market gains
Potential Scenarios:
Scenario 1: CPI above 2.4% – Bearish in the short term, possibly delaying rate cuts
Scenario 2: CPI at 2.4% – Neutral to bullish, market likely to rise
Scenario 3: CPI below 2.4% – Bullish outcome, likely to boost Bitcoin and Altcoins due to greater chances of rate cuts
With the CPI coming in at 2.3%, Scenario 3 has materialized, potentially fueling gains in both the broader market and crypto assets. Meanwhile, Core CPI rose 2.8% year-over-year, in line with March’s reading and analyst expectations.
#CryptoCPIWatch# $BTC