The cryptocurrency market is closely monitoring critical inflation data from the U.S., which may affect the Federal Reserve's monetary policy.
U.S. Inflation Data
For the U.S. Consumer Price Index (CPI) data for March, a decrease to 2.5% year-over-year was anticipated. However, the actual figure came in at 2.4%. Month-over-month, instead of an expected 0.1% increase, the data showed a decrease of 0.1%.
Declining Inflation in China and Japan
In China, the CPI for March showed a year-over-year decline of 0.4%, falling short of the expected increase of 0.2%. The Producer Price Index (PPI) dropped to -2.5% against expectations of -2.3%. In Japan, the PPI for March increased by 3.9%, close to the estimated 4.0%, but bank loans were reported at 2.8%, falling below the expected 3.1%.
Cryptocurrency Market Reaction to News
The cryptocurrency market has seen significant activity following the inflation data release. Experts suggest the weak data could increase pressure on the Fed for potential interest rate cuts. Market commentator Martyparty described April 10 as 'a crazy day' due to the expected high volatility.
The influence of inflation data from the U.S. and other countries creates conditions for potential changes in monetary policy and significant fluctuations in the cryptocurrency market.
