Large green candles adorned the price charts of cryptocurrencies at noon today following the release of the U.S. inflation report. In particular, tokens such as XRP, Shiba Inu (SHIB) and Cardano (ADA) showed strong price action. As a result, in just an hour after the data release, the price of these tokens managed to break the local negative trend and reach the level of the beginning of the week.
Of these three, ADA showed the most explosive reaction, up 3%. This can be attributed either to the arrival of investors, encouraged by the report, and who decided to bet on the Cardano token. Or, a large number of accumulated short positions were opened with Cardano token, which were “shaved off” as a result of this price action.
Breakdown of CPI report
As for U.S. inflation itself, it was better than expected: 4.9% in April after 5% in March. The market reacted positively, as expected, but it seems too early to rejoice. It is quite possible that by the end of the trading session the positivity will decline, as observed many times before.
At first glance, everything seems great. However, it is important to understand that annual inflation is now falling for technical reasons (a high base effect from last year). For example, month-on-month prices in April rose by 0.4% after 0.1% in March. In other words, price growth has accelerated.
Nevertheless, the statistics do not look threatening or disappointing. Therefore, it can be assumed that the Fed’s rate hike cycle is over.
Sourced from u.today.
Written by Gamza Khanzadaev on 2031-10-21 09:38:07.
