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Analysts: Weak inflation data may prompt the Fed to cut interest rates, but the macroeconomic outlook remains grim

On April 11th, according to The Block, the cryptocurrency market remained calm after the release of CPI data on Thursday. The report showed an overall decrease in inflation rates in the United States last month, marking a significant decline for the first time since 2020 and 2021. BRN analyst Valentin Fournier stated that although the March data did not include the latest tariff rebound, the Fed may "cut interest rates and ease financial conditions" in May, which could boost assets such as Bitcoin. Fournier also speculated that Wall Street cryptocurrency funds may soon see a large influx of funds. He mentioned that the convergence of positive factors such as easing inflation, tariffs possibly peaking, and the new SEC chairman taking office, despite high volatility, suggests limited long-term downside risks and that the short-term impact of the US-China trade tensions may be overstated. However, some experts pointed out that the March CPI may have limited impact on Fed decisions due to tariffs and trade wars. Mike Cahill of Douro Labs stated that a bond market collapse, cooling inflation, and delayed tariffs are not a macro reset, but rather signals of structural imbalances, with the global system still under pressure. Mike Marshall, research director at Amberdata, believes that based on traditional financial turmoil, the long-term macro background for cryptocurrencies remains bearish.

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