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Bitcoin and Altcoins Prices Soar as CPI Report Shows US Inflation Drops to 3.4% – Best AI Cryptocurrencies to Buy Now
Today’s CPI report continued an 11-week trend of data coming in above 3%, leaving traders skeptical that the number will drop below that number anytime soon. However, the report revealed slightly lower than expected inflation rate of 3.4%.
In response, the price of Bitcoin has reacted positively, currently trading well above $64,000, an increase of almost 5% today. Notably, AI cryptocurrencies made even more gains, with RNDR and NEAR prices rising around 10% today.
Why is the CPI report positive for Bitcoin and Altcoins prices? AI Coin Bomb
The fall in the US CPI to 3.4% in April, in line with economists’ expectations, is seen as positive news for risk assets like stocks and cryptocurrencies. According to Richard Fetyko, CEO of altFINS, this development suggests that the Fed may reevaluate interest rate cuts this year as inflation appears to be showing a downward trend.
The Cleveland Fed’s inflation forecast called for 3.5% for April, which was better than predicted. All in all, he believes this is good news for assets like crypto.
The US CPI fell to 3.4% in April, in line with economists’ expectations. This compares to a 3.5% annual increase in the US #CPI in March 2024.
This is good news for risky assets like stocks and cryptocurrencies as it indicates that the #Fed may re-evaluate interest rate cuts this year, as it appears…
– Richard Fetyko, CEO of altFINS (@FetykoRichard) May 15, 2024
Daan Crypto Trades, an analyst with nearly 400,000 followers on X, noted that the AI sector was rebounding stronger in this movement. He noted that while memes were the weakest this time around, it could simply be low noise in the time frame or a natural market correction.
Alternatively, this could be explained by other currencies being more shorted, resulting in a more explosive reaction during the upward move following the CPI report.
The AI sector jumps most strongly in this movement.
The memes are the weakest this time.
Just low time noise or nature’s cure?
It could also be easily explained that the other currencies were sold more short, so they reacted more explosively during this bullish move after the CPI. pic.twitter.com/HyeSB8EmFE
– Daan Crypto Trades (@DaanCrypto) May 15, 2024
In fact, the Near Protocol (NEAR) the price rose 9% today, trading around US$7.59, while Render (RNDR) the price rose 8%, trading at around US$10.83. This positive momentum raises the question of whether the crypto AI sector is primed for a boom following the favorable CPI news.
The integration of AI technologies into blockchain projects could potentially drive growth in this sector, as it appears the crypto market recognizes the transformative potential of these innovations.
Top Artificial Intelligence (AI) Cryptocurrencies to Invest in Now
Traders will now be on the lookout for the best AI cryptocurrencies to buy, capitalizing on the positive sentiment surrounding the sector following news of the CPI report. A project that attracts attention is WienerAI (WAI)a new AI meme coin highlighted by crypto analyst Michael Wrubelwho has more than 312 thousand subscribers on YouTube.
Wrubel praised WienerAI’s robust staking options, noting that over 79% of total tokens have been staked, offering a high annual return of 522%, which is a potentially significant draw for investors. The project has already raised over $1.8 million in its pre-sale in its first few weeks, combining the appeal of AI and meme coins.
Another AI crypto currency with potential is 5th Escape (5SCAPE)aiming to build an integrated AR and VR gaming ecosystem, complete with hardware like VR glasses.
The project successfully raised US$5.9 million in its presale, with a soft-cap set at US$15 million. Rapid growth, combined with a comprehensive KYC and audit process, positions 5th Scape as a platform that connects diverse virtual experiences, from games to educational tools, thus broadly attracting gamers and developers.
Conclusion
The recent CPI report indicating a lower than expected inflation rate of 3.4% injected optimism into the cryptocurrency market today. The prices of Bitcoin and altcoins, especially those considered AI cryptocurrencies, have experienced notable price increases.
As traders look to discover the best Artificial Intelligence (AI) cryptocurrencies to buy now, projects like WienerAI and 5scape are attracting attention for their offerings and strong presale performance. The market reaction suggests that AI cryptocurrencies could be well positioned for growth as crypto investors prepare for the next pump in this bull run.