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๐บ๐ธ Inflation in the United States is slowing down: the consumer price index in March ( CPI ) is 2.4% ๐
In March, the U.S. consumer price index increased by only 2.4% year-on-year, lower than the February level of 12.8% and the market forecast of 12.6%. This is the lowest level since the beginning of 2021, clearly indicating that inflation is slowing down ๐โ๏ธ. However, the market's reaction to this news has been tepid ๐ค.
๐ Why didn't the market react strongly?
The surprise is not that significant: the decline was anticipated, just slightly weaker than expected.
Core inflation remains stubborn: excluding volatile products and energy, core inflation remains above the target of 2%.
The market has already "priced in" the rate cut: now we are waiting for confirmation of action from the Federal Reserve, not just data.
๐ฆ What does this mean for the Federal Reserve and interest rates?
Expectations for interest rate cuts are intensifying, but they are still far from certain:
โ Regarding "doves" (doves) โ Inflation is cooling down, which means a first interest rate cut could be considered in June-July 2025 ๐๏ธ
โ ๏ธ HoweverโThe Federal Reserve wants to see a continuous decline, especially in core Inflation. One reportโnot a trend.
โก๏ธ Conclusion: The expectation of interest rate cuts still exists, but it is more likely to be 1-2 cuts in 2025, rather than large-scale easing ๐ก
๐ช How does this affect the cryptocurrency market?
๐ข Positive signals for Bitcoin and other altcoins:
๐ A more dovish Federal Reserve policy = declining bond yields = increased interest in risk assets( including cryptocurrencies).
๐ช BTC, ETH, and other cryptocurrencies often respond with a bullish reaction to such macro news, especially when it means the dollar will become cheaper ๐ต
โ ๏ธ But growth is limited: Traders hope not only to get confirmation of Inflation but also to see the Federal Reserve's own policy confirmation. Currently, it still maintains a "hawkish" (hawkish) โ cryptocurrencies are waiting ๐ฆ()(