The United States has just released inflation data for May. Prices rose slightly by 0.1% compared to April and 2.4% compared to May last year. Core inflation, excluding food and energy, rose by 2.8% compared to May last year. These figures are lower than everyone expected before, indicating that inflation is still slowly cooling down.
As soon as the news came out, the market reacted a little: the interest rate of US Treasury bonds fell, the US dollar weakened a bit, the price of gold rose, and risky assets such as stocks also went up in the short term. However, cryptocurrencies such as Bitcoin did not make much noise. It seems that the market is not too surprised by this result. It may have guessed that inflation would slow down before.
Although this data is good for those who hope that the Federal Reserve will cut interest rates, it is estimated that they will choose to stay put in the upcoming meeting and not cut interest rates for the time being. The real interest rate cut may have to wait until after September. The policy outlook is not very clear, which makes many investors dare not let go and chase the rise.
Two other news about the crypto industry:
1. Societe Generale announced that it will launch its own US dollar stablecoin in July.
2. The G7 summit is about to start, and the bigwigs will also discuss how to jointly regulate cross-border crypto assets.
These show that traditional big banks and regulators are getting more and more involved in the crypto field, pushing the industry to become more compliant and more disciplined, which is a good thing for its medium- and long-term development.
