U.S. CPI Slow Down Reach 2.7% Year-on-Year, Core CPI Dey 3.1% Pass Wetin Dem Estimate
U.S. CPI rise 2.7% year-over-year for May, come below di 2.8% forecast. U.S. CPI data dey show say price pressure dey ease, but di Core CPI wey no include food and energy rise 3.1%, small pass di 3.0% estimate. Di softer main inflation fit reduce Federal Reserve pressure to increase rates, support risk assets like cryptocurrencies. Lower consumer price growth fit make Fed pause dia tightening cycle. Crypto traders dey use U.S. CPI data as key risk indicator and dem suppose watch how market react to Fed talk and changes for inflation outlook. Historically, weak CPI results don bring short-term gains for Bitcoin and Ethereum.
Bullish
Di U.S. CPI reading wey less pass wetin dem expect for 2.7% dey show say inflation pressure dey reduce. Dis one dey reduce di chance say Fed go ginger aggressive rate hikes. For past tins wey resemble dis one, like di April CPI miss, Bitcoin and other main cryptocurrencies rally as dem expect say tightening go pause. The small pass for Core CPI at 3.1% fit make people no too dey optimistic but overall e still support soft monetary stance. For short term, crypto traders fit see price gain as yields begin stabilize and liquidity dey plenty. For long term, sustained lower inflation fit boost risk appetite, e go improve market stability and fund raising conditions for tokens.