On January 13th of this year, the U.S. Bureau of Labor Statistics released the December CPI data, which turned out to be perfectly aligned—completely matching the most optimistic market forecasts.

Breaking down the data: Overall CPI increased by 2.7% year-over-year, unchanged from the previous month, which is exactly the expected level. Month-over-month, it rose by 0.3%, also fully in line with expectations. More interestingly, core CPI (excluding food and energy) grew by 2.6% year-over-year, slightly improving. The month-over-month growth was only 0.2%.

The true implications behind this set of data are worth pondering. U.S. inflation has gradually cooled from its previous high-temperature state and has now entered a relatively stable phase. Although some stickiness remains, there are no signals of further increases. Housing costs have been the main driver pushing CPI higher, but this time, the growth rate has significantly slowed down. Energy and food prices have slightly rebounded, but overall, they remain within controllable ranges.

**What does this mean for our holdings of digital assets like BTC, ETH? Why is it considered a major positive?**

First, the Federal Reserve’s rate cut window has become clearer. With inflation not unexpectedly rebounding, it indicates that the Fed still has room to cut rates in the first half of 2026. Market expectations for the total number of rate cuts this year have already been revised upward from the previous "2-3 times." The FOMC meeting at the end of January will most likely hold steady, but by March and May, expectations for rate cuts will significantly heat up. Few truly understand what this means—the arrival of a low-interest-rate era, which entails a flood of cheap liquidity entering the market, and risk assets (especially digital assets) are the sectors most likely to benefit in this environment.

Second, risk appetite is beginning to fully recover. After the CPI data confirmed a "soft landing," U.S. stock index futures surged, the dollar index weakened slightly, and gold prices hovered near historic highs. During such times, the crypto market, with its high beta coefficient, usually outperforms the broader market. Once market sentiment shifts toward risk appetite, funds will naturally flow into the highest-yielding expectations, and digital assets are precisely at the forefront of this ecosystem.

From a more macro perspective, the global central bank rate cut cycle is accelerating. The Fed’s move will set an example for other major economies. The policies of the European Central Bank and Bank of England will also follow suit. In this broader context, funds seeking higher returns will naturally start allocating to some non-traditional assets, and the appeal of the crypto market will continue to rise.

Finally, this data also breaks previous market concerns about "inflation rebounding." By mid-last year, many worried about inflation resurgence, but now it appears that this risk has been largely cleared. This is crucial for the redefinition of asset pricing logic—without inflation pressures and with rate cut expectations rising, assets that do not generate cash flows over the long term but are expected to appreciate will regain valuation support.