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The latest US CPI data has just been released. The overall figures meet expectations with little fluctuation, but the core CPI performed better—below market forecasts. This is undoubtedly good news for the crypto market.
Why is that? It's simple: improvement in core CPI indicates that inflationary pressures are genuinely easing, and the Federal Reserve's expectation of future rate cuts is rising accordingly. Once this expectation takes hold, liquidity will shift back toward risk assets, making the crypto market a natural beneficiary.
From DOGE to ETH, these mainstream cryptocurrencies have historically performed strongly during rate cut cycles. In terms of market sentiment, we see funds already beginning to stir. In the short term, this positive data release is enough to inject a boost of confidence into the market.
Of course, we still need to pay attention to the Federal Reserve's specific stance and subsequent economic data, but from the current perspective, the case for going long seems to have gained another reason. What do you all think about this CPI's impact on the market? Share your thoughts in the comments.