CPI cooling boosts confidence, US stocks hit record highs, BTC surpasses 66K, ETH surpasses 3,000

Yesterday's US CPI data showed a cooling inflation, sparking hopes of a rate cut among investors. The three major US stock indexes closed at record highs, with BTC rising over 7% in the past 24 hours to surpass 66K, while ETH increased by 5% to once again rise above 3,000.

CPI Data Shows Cooling Inflation

The Consumer Price Index (CPI) data for April released yesterday showed a year-on-year increase of 3.4%, in line with market expectations, and a month-on-month increase of 0.3%, slightly lower than the expected 0.4% rise. The core CPI, which excludes food and energy costs, saw a year-on-year increase of 3.6% in April, with a month-on-month increase of 0.3%, matching market expectations.

The core CPI dropped to a new low since December 2023, falling below 0.3% for the first time, indicating a downward trend in inflation, boosting market expectations for a rate cut starting in September.

According to the CME FedWatch tool, the probability of the Federal Reserve initiating a rate cut cycle in September has risen to over 70%, compared to just over 60% the previous day.

BTC Surpasses 66K, ETH Surpasses 3,000

After several days of narrow range consolidation, Bitcoin surged above 62K yesterday and was trading at $66,233 at the time of writing. Looking at the daily chart, it broke out of a converging triangle pattern and successfully crossed above multiple moving averages.

On the other hand, Ethereum showed weaker performance, as the Ethereum spot ETF faced an important deadline without any discussion signals. Bloomberg ETF analyst Eric Balchunas is pessimistic, suggesting that an Ethereum spot ETF may not appear until the end of 2025.

The U.S. presidential election is crucial, and an Ethereum spot ETF may not appear until the end of 2025!

With the rise in prices, Ethereum Gas fees have also picked up, with gas prices climbing back to double digits last night after being in single digits for several days.