After the publication of the U.S. inflation data today at noon, large green candles decorated the cryptocurrency price charts. Particularly, considerable price movement was seen for tokens like XRP, Shiba Inu (SHIB), and Cardano (ADA). Because of this, the price of these tokens was able to reverse the local downward trend and return to the start of the week within one hour after the release of the data.
Of these three, ADA’s response was the most ferocious, rising by 3%. This may be due to the influx of investors who were inspired by the article and chose to wager on the Cardano coin. Alternately, this price action caused a significant number of accumulated short positions to be “shaved off” after being opened with Cardano token.
Breakdown of CPI report
The rate of inflation in the US, which was 4.9% in April after being 5% in March, was better than anticipated. Positive market reaction was anticipated, but it seems premature to celebrate. The enthusiasm may actually decrease at the conclusion of the trading day, as has frequently been seen.
Initially, everything appears to be perfect. It’s crucial to note that the yearly rate of inflation is currently declining due to technical factors (a large base effect from the previous year). For instance, prices increased 0.4% in April compared to 0.1% in March. In other words, the rate of price rise has quickened.
However, the data don’t appear alarming or discouraging. It is safe to infer that the Fed’s cycle of rate increases is complete.
