Compass Investments

Crypto vs. Dollar

📌 Bitcoin rose 4% after U.S. inflation fell to 6.5% in December.

The cryptocurrency market reacted optimistically to the inflation data, which came in below expectations. This gave hope for monetary policy easing and the possibility of a Fed rate cut in the near future. The price of bitcoin rose and investors were enthusiastic about the prospects of a more favorable environment for cryptocurrencies. Cryptocurrency

– The cryptocurrency market reacted optimistically to the inflation data, which came in below expectations. This gave hope for monetary policy easing and the possibility of a Fed rate cut in the near future. The price of bitcoin rose and investors were enthusiastic about the prospects of a more favorable environment for cryptocurrencies.

The Consumer Price Index (CPI) report released on Wednesday showed that inflation in the U.S. fell slightly. The monthly increase was 0.3% , down from March’s 0.4% and economists’ forecasts. Annual inflation also showed a slight decline, from 3.5% in March to 3.4% in April. These figures were a glimmer of hope for cryptocurrency investors who had been anxiously anticipating a prolonged period of high interest rates.

The cryptocurrency market’s reaction was positive. The price of bitcoin (BTC) rose more than 4% to reach the $64,500 mark. The spot bitcoin-ETF, which could potentially be a catalyst for further growth, has lost its appeal recently due to reduced fund inflows, but now, amid positive news on inflation, it may once again attract investors’ attention.

The possibility of a Fed rate cut this summer has become real again. Prior to the CPI report, traders considered this development unlikely, estimating the probability of a rate cut by September at only 50% . However, the latest inflation data may change this point of view and lead to the easing of monetary policy in the second half of the year.

Positive dynamics was observed not only in the cryptocurrency market, but also in traditional markets. S

Bitcoin

Bitcoin

$67,534.37

BTC 0.40%

Ethereum

Ethereum

$3,496.88

ETH -0.52%

Binance Coin

Binance Coin

$604.68

BNB -0.75%

XRP

XRP

$0.49

XRP 1.10%

Dogecoin

Dogecoin

$0.14

DOGE 2.71%

Cardano

Cardano

$0.43

ADA 1.42%

Solana

Solana

$151.60

SOL 0.52%