The cryptocurrency market has shown resilience following a favorable Consumer Price Index (CPI) report which indicated a 2.4% annual inflation rate. This has improved the outlook for Bitcoin, which neared $109,000, and Ether, which experienced a 3% gain trading above $2,800. The reduction of tariffs between the US and China, reverting to levels from February 2025, has also eased concerns about a potential trade war, despite the stock market reacting less positively. The S&P 500 index lost some earlier gains as investors expressed unease about economic durability and the implications of the rising US debt ceiling. Additionally, the US Dollar Index fell to its lowest point in seven weeks, signaling declining confidence in the Federal Reserve's management of economic risks. While expectations grow for an additional liquidity injection from central banks, worries about a potential recession remain, especially with forecasts of higher Fed rates by December. Investors appear to be seeking alternatives in cryptocurrencies amid these economic uncertainties.

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