Late-night blockbuster! US CPI in May is lower than expected! Bitcoin rose nearly 5%. Is the downward trend over?
I can't sleep tonight. Just now, the US Department of Labor announced that the May CPI data rose 3.3% year-on-year, which was estimated to be 3.4% and the previous value was 3.4%. The May CPI data was lower than market expectations, and the probability of the Fed's interest rate cut in September increased significantly! US stocks rose sharply, and Bitcoin rebounded nearly 5%, approaching 70,000 US dollars!
The core CPI data is too important. It is one of the data that the Fed considers whether inflation is suppressed. Overall, the US core CPI data in May fell to the lowest level in more than three years. The probability of a rate cut in September rose to 70%, and the probability of a rate cut in November was 100%!
As soon as the data came out, Bitcoin and Ethereum both rose by nearly 5%. Cryptocurrencies as a whole rebounded. Is the downward trend of Bitcoin over? I think we can't be overly optimistic first. At 2 a.m. tonight, Powell of the Federal Reserve will speak and announce the interest rate decision in June. Often his words will determine the short-term currency price trend, so we have to keep an eye on it.
Secondly, the non-farm payrolls data released last Friday exceeded expectations, indicating that the current economy is overheating. Many economists still believe that there is no hope for a rate cut this year, so last week's non-farm and today's CPI present two extreme expectations. There is still a lot of uncertainty about the rate cut!
After tonight, whether the Fed will cut interest rates or not, and when it will cut interest rates, may have an answer!
Well, originality is not easy, click to follow, you can also directly click on the Bitcoin or Ethereum below to trade! Thank you again!
