Yesterday’s CPI data released in the United States showed a cooling inflation, sparking hopes of interest rate cuts among investors. The three major stock indexes in the United States reached historic highs, with BTC rising more than 7% in the past 24 hours to reach 66K, and ETH rising 5% to surpass 3,000 once again.
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CPI Data Shows Cooling Inflation
BTC Surpasses 66K, ETH Surpasses 3,000
The April Consumer Price Index (CPI) data announced yesterday showed a year-on-year increase of 3.4%, in line with market expectations, and a monthly increase of 0.3%, slightly lower than the expected 0.4% increase. The core CPI, which excludes food and energy costs, increased by 3.6% year-on-year in April, with a monthly increase of 0.3%, in line with market expectations.
The core CPI has reached a new low since December 2023, falling below 0.3% for the first time, indicating a downward trend in inflation and boosting market expectations of interest rate cuts starting in September.
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According to the CME FedWatch Index, the probability of the Federal Reserve starting an interest rate cut cycle in September has increased to over 70%, compared to the previous day’s 60%.
After trading within a narrow range for several days, Bitcoin rose sharply from above 62K yesterday and reached 66,233 US dollars before the deadline. From a daily perspective, it broke through the upper limit of the converging triangle range and successfully surpassed multiple moving averages.
Image source: Binance
The trend of Ethereum is relatively weaker, as the Ethereum spot ETF faced an important deadline without any signs of discussion. Bloomberg ETF analyst Eric Balchunas is even more pessimistic, suggesting that an Ethereum spot ETF may not appear until the end of 2025.
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The U.S. presidential election is crucial, and an Ethereum spot ETF may not appear until the end of 2025!
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Image source: Binance
With the rise in cryptocurrency prices, Ethereum Gas has become hot again, with the Gas Price reaching double digits after several days of single digits.
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Further reading:
5/15 Bitcoin ETF receives net inflows of at least 300 million US dollars, GBTC sees 27 million pounds entering the market
CPI higher than expected, no hope for rate cuts in June, stocks and bonds fall, but cryptocurrency rises against the trend