isn't the sudden change of mood to extreme bullishness also inflationary?
explain please
the CPI data shows the inflation of goods and services. A higher consumer Inflation on foods usually mean that people pay more on food and less on risky assets like cryptocurrencies or stocks. And a reduce inflation will mean that people can have more to spend on this assets. That’s why the news of an increase in inflation causes bearish sentiment and vice versa. The CPI data reduce from 3.5% to 3.4% and the market reacted with a pump.
It is worth mentioning that some people buy more bitcoin during inflation times as it is seen as an hedge against it.
The more I watch the reactions and the price movements after this news came out the more I believe crypto has become infested with bots that trade based on market news like forex is right now, one keyword in the press and they go full swing, this almost never happened years ago but lately it happens every single month the moment it hist the newspaper the volume and the price pick up. So I don't really know if it's a bullish sentiment or it's an induced bullish feeling.
What I think is crypto is been treated as forex today by the vast number of perpetual or future traders we have than the old method of investing and long term holding. The spike that happens after news like this is to me caused by them just like the forex speculators