Yesterday, the US released the Consumer Price Index (CPI), which was higher than expected, shattering market hopes for a rate cut by the Federal Reserve in June. US stocks fell across the board, bond prices plummeted, but cryptocurrencies defied the trend and rebounded after a brief decline. Bitcoin once again surpassed the $70,000 mark, while BNB returned to $600 and TON saw a weekly increase of over 50%.
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Inflation Higher Than Expected, Rate Cut Unlikely in June
Stocks and Bonds Decline, Cryptocurrencies Show Strength
Due to the continued rise in gasoline and housing costs, the US Consumer Price Index (CPI) for March showed an annual growth rate of 3.5%, exceeding expectations for the third consecutive month. The core CPI, which excludes food and energy prices, rose by 3.8% on an annual basis, also surpassing the market estimate of 3.7%.
With persistent high inflation and recent hawkish statements from Federal Reserve officials, investors’ expectations for a rate cut cycle starting in June have been shattered. According to the CME FedWatch Index, the market’s expectation for a rate cut has been pushed back to September, and the potential rate cut for the rest of the year has been reduced to 2 digits.
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Yesterday, US stocks fell across the board, with the S&P 500 index dropping 0.95%, and the small-cap Russell 2000 index falling 2.5%. The yield on the 10-year US Treasury bond closed at 4.559% on Wednesday, the highest level since November last year. The US dollar strengthened across the board, while the USD/JPY exchange rate fell to a 34-year low of 153.24.
After briefly falling to 67,518 following the release of yesterday’s data, Bitcoin gradually rose again and returned to the $70,000 mark.
Yesterday, most of the top 10 cryptocurrencies by market capitalization showed an upward trend. BNB rose above $600 again, with a 24-hour increase of 5%. TON, which will soon introduce palmprint identification and launch a blockchain phone, has continuously reached new all-time highs, with a weekly increase of over 50%.
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TON ecosystem will launch a blockchain phone, presale price of $99
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TON will introduce palmprint identification and launch the Toncoin rewards program
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CPI
rate cut
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