Recently, the US CPI data was released, and the market reacted significantly. The overall CPI was in line with expectations, but the core CPI is the real focus—year-over-year only 2.6%, the lowest in four years since March 2021, clearly below market forecasts.

What does this data mean for cryptocurrency investors?

First, the sharp decline in core inflation data has directly boosted expectations of rate cuts. The probability of a rate cut by the Federal Reserve in January has significantly increased, and market expectations for loose liquidity have also strengthened. When interest rate expectations fall, it usually stimulates demand for risk assets—historically, mainstream cryptocurrencies like Bitcoin and Ethereum have surged by thousands of points during similar periods.

Second, the substantial easing of inflationary pressures has changed market risk appetite. In a high-inflation environment, investors tend to adopt conservative allocations; but when inflation peaks and policies turn to easing, funds seek higher-yield asset classes. At this point, cryptocurrencies as risk assets become more attractive. Breaking through this key threshold in core CPI is a very strong positive signal.

Currencies like ZEN, ZEC, and DASH have also responded recently, and the entire crypto market's bullish momentum is building up. The question is, can this wave of positive news sustain and push mainstream coins through key resistance levels? Feel free to share your thoughts.