CPI Exceeds Expectations, No Hope for Interest Rate Cut in June, Stocks and Bonds Decline Simultaneously, Cryptocurrencies Rise Against the Trend
Yesterday, the US released the Consumer Price Index (CPI), which was higher than expected, shattering hopes of a rate cut by the Federal Reserve in June. US stocks fell across the board, bonds plummeted, but cryptocurrencies defied the trend and strengthened after a brief decline. Bitcoin once again surpassed the $70,000 mark, and BNB returned to $600. TON saw a weekly increase of over 50%.
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Inflation higher than expected, rate cut in June unlikely
Stocks and bonds both fell, cryptocurrencies strengthened against the trend
Due to the continuous rise in gasoline and housing costs, the US Consumer Price Index (CPI) for March recorded a year-on-year increase of 3.5%, exceeding expectations for the third consecutive month. The core CPI, which excludes food and energy prices, increased by 3.8% year-on-year, also higher than the market’s estimate of 3.7%.
With persistent high inflation and recent hawkish comments from Federal Reserve officials, investors’ expectations for the rate cut cycle, which was originally expected to begin in June, have been shattered. According to the CME FedWatch Index, the market now expects a rate cut to be postponed until September, and the expected magnitude of rate cuts for the rest of the year has been reduced to 2 digits.
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Yesterday, US stocks fell across the board, with the S&P 500 index down 0.95%, and the Russell 2000 index, representing small-cap stocks, down 2.5%. The yield on the US 10-year Treasury bond closed at 4.559%, the highest level since November last year. The US dollar strengthened across the board, while the USD/JPY fell to a 34-year low of 153.24.
After the release of yesterday’s data, Bitcoin briefly dropped to 67,518, but then gradually rose again, returning to the $70,000 mark.
Yesterday, almost all of the top 10 cryptocurrencies by market capitalization showed an upward trend. BNB once again exceeded $600, with a 24-hour increase of 5%. TON, which recently introduced palmprint identification and launched a blockchain phone, has continuously reached new historical highs, with a weekly increase of over 50%.
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TON ecosystem to launch blockchain phone, presale price of $99
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TON to introduce palmprint identification and launch Toncoin reward program
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CPI
Rate cut
Further reading
Central bank raises interest rates by half a point, Yang Jinlong mentions Bitcoin in briefing: It’s like a roller coaster, buckle up
CPI too hot, market sentiment cools, Bitcoin falls below $50,000
