Last night, the United States released the latest data on the Consumer Price Index (CPI) for April, with an annual growth rate of 3.4%, in line with market expectations, and a monthly increase of 0.3%, slightly lower than the market expectation of 0.4%. The core CPI, which excludes food and energy costs, had an annual growth rate of 3.6%, up 0.3% from the previous month, in line with market expectations.
Generally speaking, the Federal Reserve (FED) regards the core CPI as a more reliable inflation indicator because it excludes more volatile cost factors such as food and energy and reflects the underlying inflation trend.
Therefore, the core CPI in April remained within market expectations, which will help maintain the Fed's dovish stance on interest rate hikes and further alleviate market concerns that "increasing inflationary pressures may lead to another rate hike by the Fed." This is an important shot in the arm for investors in risky assets.
U.S. stocks, cryptocurrency markets surge
As inflation data turned optimistic, risk assets began to rebound, with several indexes hitting record highs.
In terms of U.S. stocks, the Nasdaq Composite Index hit a new high at the close for two consecutive days, rising 231.21 points, or 1.4%, while the S&P 500 index rose 61.47 points, or 1.2%.
Not to be outdone, the Dow Jones Industrial Average rose 0.9%, marking the first time since March 21 this year (2024) that the three major indexes set all-time highs on the same day.
The cryptocurrency market, which has performed slightly sluggishly recently, also benefited, with BTC rebounding above $66,000 for the first time since April 24, reaching a high of $66,567. It has risen by more than 7% in the past 24 hours and is now trading at $66,111 at the time of writing.
ETH rebounded above $3,000 and was trading at $3,019 at the time of writing, a 4.2% increase in a single day.
Will the trend continue? Should I take profits in time?
In view of the optimistic start of the CPI data, it is predicted that inflation will continue to decline in the coming months and give the market more positive news. The first cooling of CPI in the past three months is likely to be an important reversal signal, which is expected to drive the market to a bullish sentiment.
Regarding the next move of Bitcoin, the surge in Bitcoin this morning has successfully broken through the downward trend that has limited prices in the past few weeks. This breakthrough may have opened the way for Bitcoin to $71,000. If this resistance level is successfully reversed, the next target will see a record high of $84,000, and altcoins will follow suit.
From the perspective of on-chain data, it is all positive. I have said before that if the CPI data is good, it is expected to reach 70,000. Once the trend reverses, it will not last only 24 hours. Therefore, it is recommended to hold it patiently. The coins that earn a lot and the coins with heavy positions can appropriately stop the profit.
There are two other threats to the cryptocurrency world:
1. The war between Israel and Hamas. If the conflict escalates, the cryptocurrency world will also be affected.
2. The deadline for Mentougou to release the coin is October this year. You may have to be careful as September approaches (but I don’t know if this long-standing cannon will be delayed)
Therefore, when doing transactions, you should always change your thinking and not remain unchanged.
The CPI data is of great significance, rekindling hopes for a rate cut by the Federal Reserve.
All you have to do is hold on to your coins patiently.
Those who are short can wait for the market to correct a bit today, and then enter the market after Bitcoin confirms support at around 63,500.
Recently, many people have asked me what is under my skirt. If I just tell them, some people will not believe me. I have to show them the real thing.
Not only will there be spot products, there will also be 100x Golden Dogs, and there will also be tutorials on making money. In a word, as long as there are profit opportunities, I will share them with you. The spot market has been difficult recently, but we have only lost one GAS. The SOL ecosystem, including the meme sector layout, is basically at 20%-30%. In the future, we will have to find more potential currencies and more certainty-based profit opportunities for everyone, so that everyone can gain from it.
This wave of rise was mainly driven by the big players, but the copycats did not move. In the blood-sucking market, there was still insufficient funds in the market. This data itself was just in line with expectations and not much lower than expectations. It is not worthy of supporting such a large rise. Since the main force has reached 6.6 in one go, it should not come down in the short term.
If you want to copycat, you still have to look at Ethereum and the leading currencies in each sector. Bitcoin is almost at the high point ahead with only 10%, while Ethereum still needs 30%
Three hot spots
Sol Ecology jup ray jto
Meme Ecology Meme People Floki Meme Bome Bonk
AI Ecosystem WLD Arkm Agix
Just hold on to the existing stocks.
If you don't know how to allocate your positions, when to improve and when to exit, or how to pick strong sectors, please feel free to consult us.
Later, I will bring you analysis of leading projects in other tracks. If you are interested, you can click to follow. I will also organize some cutting-edge consulting and project reviews from time to time. Welcome all like-minded people in the cryptocurrency circle to explore together. If you have any questions, you can comment and ask questions