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

PANews reported on April 11 that according to The Block, the crypto market remained calm after the CPI data was released on Thursday, with the report showing that the US inflation rate overall declined last month, marking the first significant drop since 2020 and 2021. BRN analyst Valentin Fournier stated that although the March data did not include the latest tariff rebound, the Federal Reserve may "cut rates and ease financial conditions" in May, which could boost assets like Bitcoin. Fournier also speculated that Wall Street crypto funds might soon see a large influx of capital. He noted that positive factors such as inflation relief, potential tariff peaks, and a new SEC chairman converging suggest that while volatility remains high, the long-term risk of downturn is limited, and the short-term impact of US-China trade tensions may be exaggerated. However, some experts pointed out that the March CPI's impact on the Federal Reserve's decision-making might be limited due to tariffs and trade wars. Mike Cahill from Douro Labs said that market crashes, cooling inflation, and delayed tariffs are not macro resets but signals of structural imbalances, with the global system still under pressure. Mike Marshall, research director at Amberdata, believed that based on traditional financial turbulence, the long-term macro context for cryptocurrencies remains bearish.