CPI Data Positive, Bitcoin Briefly Dips, Is the Bull Run Still On?The recent release of CPI data, showing a year-on-year rate of 2.4%, while lower than the previous value of 2
CPI Data Positive, Bitcoin Briefly Dips, Is the Bull Run Still On?
The recent release of CPI data, showing a year-on-year rate of 2.4%, while lower than the previous value of 2.5%, came in higher than the expected 2.3%. This triggered a brief market fluctuation. Bitcoin also experienced a downward flash crash, briefly dipping below $60,000 before quickly recovering. This sparked panic in the market, with some investors beginning to express pessimism towards Bitcoin, even predicting a drop below $50,000. Combined with the Federal Reserve's recent hints at a potential pause in interest rate cuts, some believe the bull run is over.
However, a calm analysis of the current situation reveals no need for excessive panic. Firstly, despite the CPI data slightly exceeding expectations, the overall trend remains positive, with CPI figures showing a clear improvement over the past year. Secondly, interest rate cuts benefit the entire financial market, and even if the Fed begins to tighten monetary policy, the pace of rate cuts will not suddenly halt, nor will it shift to a rate hike. Considering Bitcoin's price movement, it remains in a bull market phase, having already surpassed the previous bull market's peak. It is simply encountering resistance near historical highs, initiating a normal period of consolidation.
It is unrealistic to expect continuous price increases. Corrections are a natural phenomenon in market trends. A long consolidation period should not be interpreted as a top signal. On the contrary, longer consolidation periods often lead to larger subsequent rallies. Determining the bottom and top of a bull market requires a comprehensive analysis of multiple factors, including time, price, volume, speed, and chart patterns, and should not be based solely on subjective interpretations of limited information.
Based on the overall CPI data, interest rate policies, and Bitcoin's price movements, the overall trend remains positive. The future looks promising. Investing demands rational thinking, not being swayed by short-term fluctuations. Blindly following the herd and opposing market trends often lead to investment failures.
The financial market is a place where a select few are right, while the majority are wrong. Newcomers are often misled by this phenomenon, eventually leading to investment losses. It is crucial to maintain a calm mind, diligently learn industry knowledge, and enhance personal experience. Investing is a long-term endeavor that requires patience and reason, not chasing short-term profits.
To become one of the few right in the financial market, you need to possess strong market judgment, avoid blind following, practice independent thinking, and establish your own investment system. The above analysis represents personal opinions and does not constitute investment advice.
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