Analyst: Slowing Inflation Expected to Reignite Rate Cut Expectations, Weak Non-Farm Payroll and Employment Data to Boost Bitcoin Rally

BlockBeats News, May 2nd: BRN's Chief Research Analyst Valentin Fournier pointed out in a report on May 2nd that despite mixed macroeconomic performance, the slowdown in inflation has reignited market expectations for a Fed rate cut. "With the inflation trend nearing the Fed's 2% target, the growing expectations of multiple rate cuts are strengthening, which may trigger a new round of liquidity injection. Compared to stocks that may be affected by economic slowdown, alternative risk assets such as cryptocurrencies are expected to benefit more."

Mike Cahill, CEO of Douro Labs, stated that the U.S. employment report covering non-farm payrolls, unemployment rate, and wage growth may foreshadow the Fed's upcoming interest rate decisions. Earlier data this week showed a private-sector addition of 62,000 jobs in April, lower than the March level. Cahill mentioned that if Friday's data is soft again, with the strengthening rate cut expectations, the price of Bitcoin may rise again. "Institutions are closely watching these macro signals because Bitcoin is no longer seen purely as a risk asset—now it is becoming a macro tool for interest rate sensitivity and global transactions, which was its original design intent."