Many investors may have worried yesterday that the positive CPI data would lead to a decline in US stocks, but in fact such concerns may not be necessary.
Yesterday's surge in the Russell 2000 index showed that investors have begun to anticipate the upcoming interest rate cuts.
In the past, technology stocks were favored for their defensive asset characteristics, but now investors are optimistic about the defensive interest rate cuts that the Federal Reserve is about to take, which is good for the market. Therefore, investors have bought a large number of small-cap stocks.
In other words, when the economic outlook is uncertain, investors are more inclined to buy assets such as Bitcoin and Ethereum to avoid the risks that may be caused by insufficient liquidity of altcoins.
But when economic expectations improve, the number of people investing in Bitcoin and Ethereum may decrease, and more people will turn to speculating in altcoins.
In short, this is the logic of the market. However, there may be a delay in the transmission of this information to the cryptocurrency circle. I hope these views will help everyone's investment decisions.
