Post
Topic
Board Economics
Re: April CPI eased to 3.4 from 3.5 in March
by
Fortify
on 30/05/2024, 21:03:52 UTC
Legacy and the cryptocurrency markets have rebounded today after the latest CPI print came out as expected with 3.4 - down a little from the previous month with 3.5 during March.

You can see how it currently looks in this bar chart, https://www.investing.com/economic-calendar/cpi-733

If the CPI prints another small decrease during the next report, both legacy and cryptocurrency markets could surge to new all time highs. But to play the devil's advocate, isn't the sudden change of mood to extreme bullishness also inflationary?

A change of 0.01 is insignificant, a rounding error almost and oftentimes these can be corrected in later months when more data becomes available. What is useful to know is the general trend and whether it starts to plateau or we see spikes upwards again. It's a good sign that inflation may be coming under control and that interest rates might start to drop again. Who knows how that will effect bitcoin though, as it reacts very erratically. What we will see is money becoming more easily available again and lower borrowing rates for cash, which some speculators might choose to drop back into crypto. It's all a big guessing game at the moment and one small external jolt could jeopardize it all.