Crypto Market, Stocks, and ETFs Build Momentum Ahead of US CPI Print, China-US Meeting

Core Insights - The upcoming U.S. Consumer Price Index (CPI) data is critical for market movements, particularly regarding potential Federal Reserve rate cuts and overall investor sentiment [1][3][6] - A softer CPI reading could lead to a 25-50 basis point rate cut, which may boost Bitcoin prices towards $113,000-$114,000, while a hotter reading could delay cuts and dampen market momentum [7][6] Market Reactions - Global markets are experiencing cautious optimism, with crypto, stocks, and ETFs climbing as traders anticipate a softer inflation print [2][6] - Bitcoin has surpassed $111,000, driven by easing U.S.-China trade tensions and a broader risk appetite [2] ETF and Crypto Trends - U.S. spot Bitcoin ETFs saw $1.23 billion in outflows last week, while global crypto ETF inflows reached $5.95 billion, marking the strongest inflow this quarter [4] - Ethereum and Solana have gained between 3-5% amid growing confidence in an easing monetary cycle [4] Federal Reserve's Position - The Federal Reserve is hinting at a potential return to quantitative easing (QE), which could flood the financial system with liquidity once the government reopens [5][8] - Historically, monetary easing has correlated with digital asset rallies, suggesting a bullish outlook for the crypto market if QE resumes [9] Sentiment Indicators - The Crypto Fear & Greed Index has increased to 27, indicating cautious optimism among traders, though it remains far from euphoria [10]