The cryptocurrency market showed resilience following the release of the US Consumer Price Index (CPI) report, which indicated an annual inflation rate of 2.4%. This development coincided with the announcement of reduced US-China tariffs, easing concerns of an escalating trade war. Bitcoin approached $109,000 with a 0.67% gain, while Ether rose 3% to trade above $2,800. Despite these gains, traditional equities like the S&P 500 experienced pullbacks, suggesting that sentiments differed between asset classes. The easing of tariffs, effective from February 2025 levels, aimed to mitigate economic risks. However, concerns about US government debt and potential recession remain, especially as JPMorgan CEO Jamie Dimon warned about the vulnerabilities associated with private credit. Additionally, the US Dollar Index fell to a seven-week low, indicating retreating confidence in the dollar amidst rising inflation expectations. Investors are reallocating towards cryptocurrencies, anticipating increased liquidity from central banks regardless of economic growth outcomes.

Source đź”—