Latest Consumer Price Index and "Sell-Out Message" in the Cryptocurrency MarketWith the latest Consumer Price Index (CPI) data released, the cryptocurrency market received a positive "sell signal". The price on the one-hour chart turned negative after the core CPI followed the expected trend, indicating that inflationary speed is continuing to cool
Latest Consumer Price Index and "Sell-Out Message" in the Cryptocurrency Market
With the latest Consumer Price Index (CPI) data released, the cryptocurrency market received a positive "sell signal". The price on the one-hour chart turned negative after the core CPI followed the expected trend, indicating that inflationary speed is continuing to cool. This trend not only met market expectations but also aligns with the predictions made by the Wall Street.
Analyst View: Interest Rate Deleveraging and the Proactive Prospect of the Cryptocurrency Market
Taking into consideration, the core CPI witnessed a year-on-year increase of 3.2%, which aligns with the predictions from the Wall Street. This data indicates that, despite the temporary easing of inflationary pressure, the long-term trend remains moderate. In addition, a series of economic data recently has also shown that the inflationary drivers that were previously robust are gradually weakening.
The optimistic outlook for risk assets such as Bitcoin
Under such a macroeconomic background, it is evident that the continued rebound of the cryptocurrency market and related ETFs is positive. In the past 24 hours, the growth of the cryptocurrency market has also been positive, indicating market expectations for easing monetary policies such as interest rate cuts. Especially in the current economic environment, the demand for more loose monetary policies by investors is gradually rising.
Regarding this, the bullish prospects of Bitcoin and other risk assets have received high recognition from market analysts. They believe that with inflation no longer being the main concern of the Federal Reserve or the market, real growth is now at a new stage. At the same time, the macroeconomic background is favorable to risk appetite, which helps to support further recovery of the cryptocurrency market.
In addition, the latest retail sales data in the United States has attracted much attention. In the future, it is expected that interest rates are likely to be lowered by 100 basis points by the end of 2024. If actual growth remains stable, there is a possibility of lower interest rates by 3x25 basis points or 75 basis points. Therefore, this also provides new opportunities and dynamism for the cryptocurrency market.
From a macro perspective, the release of this inflation data implies a kind of expectation that with the gradual shift of the Fed policy and the gradual emergence of economic data, there may be greater liquidity in the future financial market, which means that investors may have a stronger psychological expectation for lower interest rates and more loose monetary policies, making speculative assets such as cryptocurrencies more attractive.
In summary, the recent market trend of cryptocurrency can be viewed as a positive "sell-signal". Undoubtedly, it embodies market expectation and favorable sentiment for easing monetary policy, improved economic data and potential market opportunities. We will also closely monitor market dynamics and changes in relevant economic data in the coming time to grasp more investment opportunities.
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