The latest US core Consumer Price Index data showed lower-than-expected inflation, fueling expectations of Federal Reserve rate cuts, potentially impacting the crypto market.
New Inflation Data: Economic Implications
Recent reports indicate that the core Consumer Price Index (CPI) in the US came in at 3.1%, below the expected 3.2%. This also marked a drop in headline inflation, potentially signaling easing inflationary pressures in the economy.
Expert Opinions: Rate Cut Expectations
According to crypto research strategist Matt Mena from 21Shares, the cooling inflation data increases the likelihood that the Federal Reserve will cut interest rates this year, injecting much-needed liquidity into the markets and sending risk-on asset prices higher.
Market Reaction: Impact on Bitcoin and Investor Sentiment
Despite the positive inflation data, the price of Bitcoin fell from over $84,000 to around $83,000, amid ongoing macroeconomic uncertainty and trade tensions initiated by US President Donald Trump.
The US inflation slowdown could lead to changes in Federal Reserve monetary policy, influencing global markets and the cryptocurrency sector.
