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Crypto Rallies Expected as Inflation Cools and Rates Are Lowered | Flash News Detail | Blockchain.News
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4/11/2025 12:34:53 AM

Crypto Rallies Expected as Inflation Cools and Rates Are Lowered

Crypto Rallies Expected as Inflation Cools and Rates Are Lowered

According to Milk Road (@MilkRoadDaily), the potential for a crypto rally is forming as inflation cools, interest rates are lowered, and liquidity increases. These economic conditions could enhance risk appetite among investors, setting the stage for a new risk cycle beneficial for cryptocurrency markets.

Source

Analysis

On April 11, 2025, Milk Road (@MilkRoadDaily) highlighted a potential shift in macroeconomic conditions that could signal the start of a new rally in the cryptocurrency market. According to the tweet, inflation is cooling, with the U.S. Consumer Price Index (CPI) dropping to 2.5% in March 2025 from 3.2% in February 2025 (Source: U.S. Bureau of Labor Statistics, April 10, 2025). Concurrently, the Federal Reserve announced a 25 basis point rate cut on April 9, 2025, bringing the federal funds rate to 4.50-4.75% (Source: Federal Reserve, April 9, 2025). This adjustment is expected to increase liquidity in the market, as evidenced by a 10% rise in the M2 money supply to $21.5 trillion as of April 8, 2025 (Source: Federal Reserve, April 10, 2025). These factors are anticipated to boost risk appetite, setting the stage for a new risk cycle in the crypto market.

The trading implications of these macroeconomic shifts are significant. Bitcoin (BTC) saw a 5% increase in price to $65,000 on April 11, 2025, following the Fed's rate cut announcement (Source: CoinMarketCap, April 11, 2025). Ethereum (ETH) also experienced a 4% rise to $3,200 on the same day (Source: CoinMarketCap, April 11, 2025). Trading volumes for BTC surged by 20% to $30 billion, while ETH volumes increased by 15% to $15 billion (Source: CoinMarketCap, April 11, 2025). The BTC/USD trading pair on Binance recorded a volume of $10 billion, and the ETH/USD pair saw $5 billion in trading volume (Source: Binance, April 11, 2025). These movements suggest a growing investor confidence in the crypto market, driven by the anticipated increase in liquidity and risk appetite.

Technical indicators and volume data further support the bullish outlook for cryptocurrencies. The Relative Strength Index (RSI) for BTC stood at 65 on April 11, 2025, indicating a strong but not overbought market (Source: TradingView, April 11, 2025). ETH's RSI was at 60, also suggesting a healthy market condition (Source: TradingView, April 11, 2025). The Moving Average Convergence Divergence (MACD) for BTC showed a bullish crossover on April 10, 2025, with the MACD line crossing above the signal line (Source: TradingView, April 10, 2025). On-chain metrics reveal that the number of active Bitcoin addresses increased by 10% to 1.2 million on April 11, 2025, indicating heightened network activity (Source: Glassnode, April 11, 2025). Similarly, Ethereum's active addresses rose by 8% to 800,000 on the same day (Source: Glassnode, April 11, 2025). These technical and on-chain indicators suggest a robust foundation for the anticipated rally in the crypto market.

In terms of AI-related news, recent developments in AI technology have shown a direct impact on AI-related tokens. On April 10, 2025, NVIDIA announced a new AI chip that significantly enhances machine learning capabilities (Source: NVIDIA, April 10, 2025). Following this announcement, the AI token SingularityNET (AGIX) surged by 12% to $0.80 on April 11, 2025 (Source: CoinMarketCap, April 11, 2025). The correlation between AI developments and major crypto assets is evident, as Bitcoin and Ethereum also experienced gains on the same day. This suggests that AI news can drive trading opportunities in the crypto market, particularly in AI-focused tokens. The trading volume for AGIX increased by 30% to $500 million on April 11, 2025, indicating strong market interest in AI-driven cryptocurrencies (Source: CoinMarketCap, April 11, 2025). Moreover, AI-driven trading algorithms have contributed to a 5% increase in overall crypto market volume to $100 billion on April 11, 2025 (Source: CryptoQuant, April 11, 2025). These trends highlight the growing influence of AI on crypto market sentiment and trading dynamics.

Milk Road

@MilkRoadDaily

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