TL; DR
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After April’s CPI data hit 3.4% (down from March’s 3.5%), market players started “taking risks” and added $300 billion to the total crypto market cap within hours.
Full story
We were about to open this article with something along the lines of:
“The market just skyrocketed, but somehow the search term ‘whiplash’ didn’t peak in Google trends? We are as surprised as you are.”
But a strange turn of events has us wondering whether or not we’re living in a computer simulation: it did peak 👆
And it makes sense.
On Tuesday, virtually all major crypto charts told us to prepare for a continuation of the “choppy-droppy-price-action” (👈 that’s the technical term) we’ve been experiencing over the past two months…
Then BAM! Within hours, $300 billion was added to the total crypto market cap.
This is what it did:
April’s Consumer Price Index (CPI) data was released (aka “how much more expensive have everyday items become over the past year”) and fell from 3.5% in March to 3.4% in April.
And every month the CPI data gets lower → the closer we get to interest rate cuts → the less we pay on loans and credit repayments → the more money we all have to spend → the healthier the economy becomes.
(At least that’s the idea).
And in an effort to ride out this (potential) emerging economic boom, market players started pumping money into riskier assets, like crypto (which tends to thrive in a low interest rate environment).
This doesn’t mean we’re back in ‘up only’ mode…but it’s a start!
We’d love to see it.