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BitfinexAlpha: Bitcoin spot trading volume has significantly decreased since reaching its peak last month

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On April 18th, according to the latest report from BitfinexAlpha, the Consumer Price Index (CPI) improved in March, although it remained high. The decrease in monthly inflation rat

BitfinexAlpha: Bitcoin spot trading volume has significantly decreased since reaching its peak last month

On April 18th, according to the latest report from BitfinexAlpha, the Consumer Price Index (CPI) improved in March, although it remained high. The decrease in monthly inflation rate is mainly due to a significant decrease in energy prices. Excluding food and energy, core inflation still exists. However, we believe that sufficient work has been done in the past year to temporarily suspend interest rate hikes. Although we expect a 25 basis point interest rate hike on May 3rd, we expect further tightening after that. The fact supporting this view is that the Producer Price Index (PPI), or wholesale inflation, has witnessed the largest decline in nearly three years. The significant decline in energy prices and trade services has to some extent exaggerated the decline of the index. Although energy prices may soar again after OPEC+announced a reduction in oil production earlier this month, there should be sufficient downward pressure elsewhere to allow the Federal Reserve to take a break from further economic tightening.

BitfinexAlpha: Bitcoin spot trading volume has significantly decreased since reaching its peak last month

1. Introduction of the BitfinexAlpha report and its findings.
2. Reasons behind the improvement in Consumer Price Index (CPI) in March.
3. Analysis of the rate of monthly inflation and core inflation.
4. Temporary suspension of interest rate hikes due to work done in the past year.
5. Expected interest rate hike on May 3rd and further tightening after that.
6. Reasons supporting the view of further tightening.
7. Decline in Producer Price Index (PPI) due to significant decrease in energy prices.
8. Exaggeration of declining index due to trade services.
9. Upsurge of energy prices in the future.
10. Sufficient downward pressure allowing the Federal Reserve to take a break from economic tightening.
# BitfinexAlpha Reports Improvement in Consumer Price Index (CPI) in March
On April 18th, BitfinexAlpha released its latest report on the Consumer Price Index (CPI), highlighting an improvement in March, although it remained high. The report analyzed the monthly inflation rate, the reasons behind it, and the expected interest rate hike in May.

Reasons behind the Improvement in CPI in March

According to the report, the decrease in monthly inflation rate is mainly due to the significant decrease in energy prices. Excluding food and energy, core inflation still exists. However, this improvement is a positive sign for the economy, especially for consumers who have been affected by soaring prices.

Analysis of Monthly Inflation Rate and Core Inflation

The report also highlighted the analysis of the rate of monthly inflation and core inflation. Although the core inflation remained high in March, there has been sufficient work done in the past year to temporarily suspend interest rate hikes.

Temporary Suspension of Interest Rate Hikes due to Work Done in the Past Year

Although the report expects a 25 basis point interest rate hike on May 3rd, there is no need to panic. The work done in the past year has been effective in temporarily suspending interest rate hikes, which is good news for the general public.

Expected Interest Rate Hike on May 3rd and Further Tightening After That

The report also mentioned that although interest rate hikes have been suspended for now, it doesn’t mean that they won’t happen in the future. The report expects further tightening after the 25 basis point interest rate hike on May 3rd.

Reasons Supporting the View of Further Tightening

The report also provided reasons supporting the view of further tightening. One of these reasons is the decline in Producer Price Index (PPI), or wholesale inflation, which has witnessed the largest decline in nearly three years. The significant decrease in energy prices and trade services has to some extent exaggerated the decline of the index.

Decline in Producer Price Index (PPI) due to Significant Decrease in Energy Prices

The decline in PPI is mainly due to the significant decrease in energy prices, which is also the reason behind the improvement in CPI. Although energy prices may soar again after OPEC+ announced a reduction in oil production earlier this month, there should be sufficient downward pressure elsewhere to allow the Federal Reserve to take a break from further economic tightening.

Conclusion

The BitfinexAlpha report highlights the improvement in CPI in March, mainly due to the significant decrease in energy prices. Although core inflation remains high, sufficient work has been done in the past year to temporarily suspend interest rate hikes. However, the report expects further tightening after the 25 basis point interest rate hike on May 3rd due to the decline in PPI. Regardless, the Federal Reserve can take a break from further economic tightening due to sufficient downward pressure from other sectors.

FAQs

1. What is the Consumer Price Index (CPI)?
The CPI is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
2. What is the Producer Price Index (PPI)?
The PPI is a measure of the average change over time in the selling prices received by domestic producers for their goods and services.
3. How does this report affect the general public?
The report provides an analysis of the economy’s current state, which affects everyone. It offers insight into what to expect in the future, whether it is an interest rate hike or further economic tightening.

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