Inflation Eases: US Bond Market Faces Uncertainty Amidst Positive CPI

Recent CPI data shows a year-over-year inflation rate of 2.1%, marking the largest monthly decline since 2020. This positive development offers the Federal Reserve some leeway in upcoming policy adjustments, particularly regarding interest rates and financial conditions. While Bitcoin stabilized at $80,000 following the CPI release, spot ETFs experienced a sixth consecutive day of net outflows, raising concerns about sustained bullish momentum. However, Wall Street crypto funds are anticipating inflows due to cooling inflation, the likely end of peak tariffs, and easing regulatory expectations with the appointment of new SEC Chairman Paul Atkins.