"U.S. core CPI monthly rate cools for first time in 6 months"
The United States released CPI data for April, with an annual rate of 3.4% without seasonally adjustment, in line with market expectations. In addition, the core CPI monthly rate in April reached 0.3%, the lowest level since December last year.
🕵️♂️ Market expectations that the Federal Reserve may cut interest rates in September and December have become firm. But Fed Chairman Powell said yesterday that the Fed will "need to be patient and let restrictive policies work." Some policymakers don't expect any interest rate cuts this year.
📊 After the CPI data was released, the U.S. dollar index DXY fell sharply by nearly 40 points in the short term and is currently at 104.2. At the same time, the price of Bitcoin BTC has fluctuated greatly, rising by US$5,000, or 7.7% in the past 24 hours, and is currently at US$66,331.
Typically, risk assets prefer a weaker dollar. The U.S. Dollar Index DXY is critical to Bitcoin’s cycle as it reflects the market’s expectations for liquidity in real time. Market liquidity is currently increasing. We need to keep a close eye on DXY’s 101-102 level, as a break below this level could push Bitcoin prices to previous highs above $70,000 this cycle.
👽 My personal opinion is that it is not advisable to chase prices easily under the current circumstances, because as long as the U.S. stock market has not yet cut interest rates, opportunities for bargain hunting still exist. Pay attention to the daily MA30 indicator of Bitcoin. If the price falls back to support and stands firm, there will be a good upward trend. Remember that every dip can be used as an opportunity to gradually build a position.
