CPI Cooling Boosts Confidence, U.S. Stocks Reach Historical Highs, BTC Surpasses 66K, ETH Surpasses 3,000

Yesterday’s US released CPI data showed a cooling inflation, sparking hopes of a rate cut among investors. The three major US stock indices closed at a historic high, with BTC rising over 7% in 24 hours and reaching 66K, while ETH rose 5% and returned above 3,000.

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CPI data shows cooling inflation
BTC reaches 66K, ETH reaches 3,000
The April Consumer Price Index (CPI) announced yesterday showed a year-on-year increase of 3.4%, in line with market expectations, and a monthly increase of 0.3%, slightly lower than the market’s expected 0.4% increase. The core CPI, which excludes food and energy costs, increased by 3.6% year-on-year in April, with a monthly increase of 0.3%, in line with market expectations.

The core CPI dropped to a new low since December 2023, falling below 0.3% for the first time, indicating a downward trend in inflation and boosting market expectations for a rate cut starting in September.

According to the CME FedWatch Index, the probability of the Federal Reserve starting a rate cut cycle in September has increased to over 70% (compared to 60% the previous day).

After a narrow range of consolidation for several days, Bitcoin rose sharply from above 62K yesterday and was reported at $66,233 at the time of writing. From a daily perspective, it broke through the upper limit of the converging triangle range and successfully stood above multiple moving averages.

The trend of Ethereum is relatively weak, as the Ethereum spot ETF faces an important deadline without any signs of discussion. ETF analyst Eric Balchunas of Bloomberg believes that an Ethereum spot ETF may not appear until the end of 2025.

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The US presidential election is crucial, and an Ethereum spot ETF may not appear until the end of 2025!
)

With the rise in prices, Ethereum Gas has become hot again, with the gas price returning to double digits after being in single digits for several days.

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CPI
ETH

Further reading
5/15 Bitcoin ETF sees net inflows of at least $300 million, GBTC sees $27 million entry
Higher than expected CPI, no hope for rate cut in June, stocks and bonds fall, but cryptocurrencies rise against the trend.