Following weeks of turbulence, a shift in sentiment sparked a notable Crypto (CRCW) rally coinciding with CoinDesk's Consensus conference in Toronto, creating an atmosphere of optimism and good vibes, says CoinDesk Indices? Andy Baehr.
Bitcoin BTC climbed back above $104,000 on Tuesday with welcome fresh inflation data, President Trump's bullish outlook on financial markets, and Coinbase's inclusion into the S&P 500 among catalysts for the advance. April?s Consumer Price Index came in cooler than anticipated, which may allay pressure on the Federal Reserve anxious about inflation due to tariffs.
DeFi (DEFTF) tokens such as Hyperliquid?s HYPE are up 70% in the past week, a sign of traders favoring fundamentals as capital allocators remain cautious with their money.
Like the other U.S. bank agencies, the Fed has swept the decks of previous directives to bankers that they get sign-offs from the regulator for crypto activity.
Turkey's President Erdogan's experience with central bank interference serves as a warning, as it led to a currency collapse and increased investment in bitcoin and stablecoins.
Whether the fresh inflation numbers boost rate cut hopes or the price of bitcoin is another story as the data is from prior to last week's sweeping tariff announcements.
Data shows markets are pricing in four rate cuts in 2025 ? 0.25 bps each in June, July, September and December. Rate cuts occur when a central bank, like the Federal Reserve, lowers interest rates to stimulate economic growth by making borrowing cheaper.
Data shows markets are pricing in four rate cuts in 2025 ? 0.25 bps each in June, July, September and December. Rate cuts occur when a central bank, like the Federal Reserve, lowers interest rates to stimulate economic growth by making borrowing cheaper.
The expected end of quantitative tightening could bode well for BTC and other risk assets, but gains may be tempered by stagflationary adjustments in economic projections.
In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.
Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.
Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.
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