The first inflation report during Trump's term is about to be released, and if inflation slows down, it may boost the cryptocurrency market
ChainCatcher news, according to CoinDesk, the Bureau of Labor Statistics will release the Consumer Price Index (CPI) report on Wednesday, which will be the first inflation report during President Trump's term. If there are signs of cooling inflation, it could increase the likelihood of the Federal Reserve cutting interest rates and boost the confidence of risk asset investors who have been hit hard recently.Market predictions indicate that the overall inflation rate (CPI) will decrease from 3% to 2.9%, while the core inflation rate, excluding volatile items like food and energy, is expected to drop from 3.3% to 3.2%.A slowdown in inflation typically increases the chances of interest rate cuts, thereby enhancing investor interest in risk assets such as stocks and cryptocurrencies. Over the past four months, the CPI has accelerated continuously. Recently, the S&P 500 has fallen nearly 10% from its all-time high, while Bitcoin (BTC) has dropped about 30% from its peak, to around $80,000.Trump and Treasury Secretary Scott Bessent have both emphasized the need to lower the 10-year Treasury yield to facilitate a reduction in the federal funds rate. Currently, this strategy seems to be showing initial results.