Inflation Slowdown Fuels Fed Rate Cut Expectations Amid Mixed Economic Performance

According to BlockBeats, BRN's Chief Research Analyst Valentin Fournier highlighted in a report that despite mixed macroeconomic performance, the slowdown in inflation has reignited market expectations for Federal Reserve rate cuts. As inflation trends approach the Fed's 2% target, multiple rate cut expectations are strengthening, potentially leading to a new wave of liquidity injection. Alternative risk assets like cryptocurrencies may benefit more compared to stocks, which could be affected by economic slowdown. Mike Cahill, CEO of Douro Labs, noted that the U.S. employment report, covering non-farm employment, unemployment rate, and wage growth, might indicate the Fed's upcoming rate decisions. Early data this week showed that the private sector added 62,000 jobs in April, lower than March's figures. Cahill stated that if Friday's data remains weak, the strengthening rate cut expectations could lead to another rise in Bitcoin prices. Institutions are closely monitoring these macro signals, as Bitcoin is increasingly seen not just as a risk asset but as a macro tool sensitive to interest rates and global trading, aligning with its original design purpose.