The CPI (Consumer Price Index) report released this morning had a slight surprise, with the headline inflation coming in a bit higher than expected. This caused some volatility in the stock & crypto market, as people worried about what it could mean for future interest rate decisions.

• However, if we look at historical trends, this type of short-term volatility is often just temporary.

• When the Federal Reserve pauses on raising interest rates, as they are expected to do in the coming months, the stock market has typically continued to rally. And when the Fed eventually starts cutting rates, that’s when we usually see more significant market downturns.

• For the crypto market, there is a strong correlation with the stock market’s performance. When stocks are doing well, Bitcoin and other cryptocurrencies tend to thrive as well. And when stocks pull back, crypto usually follows suit.

• So based on the current interest rate outlook, which suggests no rate cuts until at least September, the crypto market may have several more months of upside potential, barring any major new developments.

• Of course, short-term volatility is always possible, but the overall trend could remain positive for crypto in the medium term, just as it might for the broader stock market.

The key is to focus on the bigger picture rather than getting caught up in the day-to-day noise. As long as the economic conditions remain relatively stable, the crypto market may have room to continue its recovery in the months ahead.