The Consumer Price Index for April spells good news for risk-on assets, with US stocks and cryptocurrencies displaying bullish strength in the aftermath.
The YoY headline CPI data came out at 3.4%, right in line with the market expectations. The MoM headline figure even beat the 0.4% consensus, coming out 0.1% lower.
BREAKING! US headline #inflation totaled 3.4% in April, MATCHING expectations. MoM 0.1% lower, however.Core #CPI, excluding food and energy, rose by 3.6%, also matching expectations.Back to rate cuts for 2024? pic.twitter.com/YdVvA8WY84
— jeroen blokland (@jsblokland) May 15, 2024
Additionally, the core CPI data cooled down for the first time in six months.
Investors responded to the bullish CPI by opening long positions on stocks and cryptocurrencies, with the likelihood of interest rate cuts this year now going up.
Crypto Prices Rally, AI Coins Outperform The Market
Today’s CPI data has enormous significance for crypto prices. It is important to note that bad macroeconomic data is what resulted in a halt to the first quarter crypto bull run.
Fed chair Jerome Powell adopted a dovish stance in his latest post-FOMC speech, which led to crypto prices showing strength. However, the market likely needed another confirmation of decreasing macroeconomic risks, something which today’s CPI data provides.
CPI right on Consensus. Market loves it for now. I put in a bunch of longs accross the board for now. Cheers. pic.twitter.com/ffCPdBlMYY
— Wizard Of SoHo (🍷,🍷) (@wizardofsoho) May 15, 2024
As previously mentioned, the likelihood of interest rate cuts this year - which appeared bleak a few weeks ago - has now received a significant boost. The CME FedWatch now expects two rate cuts in 2024 - one in September and another in December.
The Bitcoin price is now trading above $64,400, up 4% today. AI coins have been the most impressive, with the AI crypto market capitalization surging by 6% today.
Tokens such as Render, Near Protocol and The Graph are all up by 8%, while Bittensor is up by 13%.
Analyst Daan Crypto Trades reveals that the reason behind AI outperformance could be that they were heavily shorted in the lead-up to today’s CPI. However, the AI sector is widely expected to be the most bullish domain in this bull cycle.
Experts believe that large-cap AI cryptocurrencies could outperform every other sector while new AI coins could potentially deliver 100x returns.
Is WienerAI The Best Crypto to Buy Now?
The hype surrounding new meme coins has led investors to zero in on WienerAI ($WAI) - a new AI-powered meme coin that experts believe could deliver 100x returns.
Meme coins are very likely the only cryptocurrencies that could even outperform AI coins. Considering that $WAI sits at the confluence of two of the most in-demand narratives, the lofty 100x price prediction may not be far-fetched.
The new token is already off to a strong start in its presale, raising over $1.8 million in its presale in the first few weeks.
Investors have taken a liking not only to WienerAI’s quirky mascot - a part sausage, part dog and part AI hybrid - but also to its cutting-edge utility.
The WienerAI trading bot is a companion like no other. It is designed to answer all trading-related questions while enabling seamless swaps and providing MEV protection.
The meme coin also has its own staking protocol, which is currently offering a reward rate of over 500%.
Interested buyers can head to the WienerAI website and utilize the over-the-counter widget to purchase $WAI.
Disclaimer: This is a sponsored article and is for informational purposes only. It does not reflect the views of Crypto Daily, nor is it intended to be used as legal, tax, investment, or financial advice.
