Institution: US inflation data falls to a three-year low, but the cryptocurrency market reacts lukewarmly

ChainCatcher news, despite the U.S. inflation rate dropping to its lowest level in three years, the financial markets have yet to react even as investors hope for a potential rate cut by the Federal Reserve. Particularly in the crypto market, there has been virtually no impact from this news, with Bitcoin and others quickly recovering their upward momentum after a brief decline. The cryptocurrency market's muted response to the inflation report is partly due to growing investor interest in the bond market, as well as the brewing storm of the U.S. presidential election.

Harris's strong performance in the recent debate has reignited hopes for the Democrats to win the White House, which is seen as a possible harbinger of dovish monetary policy. Conversely, if Trump wins re-election, it could increase government spending and subsequently put upward pressure on interest rates. U.S. Treasury yields have been directly impacted by this shift in investor sentiment, and this sudden change in market mood indicates a significant shift in investor attitudes, exacerbating pessimism about the economy and the general expectation of lower borrowing costs.

Market observers note that caution remains the prevailing sentiment in the market. Investors are exercising restraint, choosing to wait for clearer signals before rebalancing their portfolios. (Jin Shi)