According to BlockBeats, after three consecutive inflation data exceeded expectations, the Consumer Price Index (CPI) data released on Wednesday roughly met expectations, stimulating a large-scale rebound in the risk market. The market performance included a new high for the SPX index, the largest single-day drop in the US 1y1y forward rate since the beginning of January, a 25 basis point drop in the pricing of 2025 Federal Fund futures from the April high (equivalent to a rate cut), and the largest single-day drop in the DXY dollar index so far this year.
The Federal Reserve has shifted to a completely unbalanced stance. As long as inflation does not accelerate again, even if inflationary pressure persists, it can be tolerated, and any signs of weakness in the job market will be seen as a driving force for policy relaxation. Therefore, although overall inflation and core inflation are still higher than the Federal Reserve's targets of 3.6% and 3.4% respectively, the market is worried about prices accelerating again, which did not happen last month. This is in line with the Federal Reserve's return to the theme of 'observing easing opportunities', as 'job market slowdown' and 'tolerable high inflation' are being confirmed one by one.
In terms of cryptocurrency, the price of BTC continues to be affected by the overall stock sentiment, breaking through the high point of this month and rising back to the peak of 67,000 USD in April. ETF inflows were also very good, with an additional 300 million USD inflow after the CPI was announced yesterday, and even GBTC saw a net inflow. However, the performance of each token still varies greatly, with ETH and some of the top 20 tokens still struggling to recover their losses. The market's gains are increasingly concentrated on a small part of the tokens (BTC, SOL, TON, DOGE), rather than the overall market rise.