Today’s CPI report has continued an 11-week trend of data arriving above 3%, leaving traders skeptical about the possibility of the figure falling below that number anytime soon. However, the report revealed slightly lower-than-expected inflation rate of 3.4%.
In response, the Bitcoin price reacted positively, currently trading well above $64,000, up nearly 5% today. Notably, AI cryptocurrencies experienced even more gains, with RNDR and NEAR prices surging around 10% today.
Why CPI Report is Positive for Bitcoin and Altcoins Prices? AI Coins Pump
The fall in the US CPI to 3.4% in April, in line with economists’ expectations, is viewed as positive news for risky assets like equities and cryptocurrencies. According to Richard Fetyko, CEO of altFINS, this development suggests that the Fed may reassess interest rate cuts this year, as inflation appears to be showing a falling tendency.
The Cleveland Fed’s inflation nowcasting had forecasted 3.5% for April, which turned out better than anticipated. All in all, he believes this is good news for assets like crypto.
US CPI fell to 3.4% in April, in line with economists’ expectations. This compares with a 3.5% annual rise in US #CPI in March 2024.
This is a good news for risky assets like equities and crypto as it indicates that the #Fed may reassess interest rate cuts this year as it seems…
— Richard Fetyko, CEO of altFINS (@FetykoRichard) May 15, 2024
Daan Crypto Trades, an analyst with nearly 400k followers on X, observed that the AI sector was bouncing strongest on this move. He noted that while memes were the weakest this time, it could simply be low timeframe noise or a natural market correction.
Alternatively, it could be explained by other coins being shorted more, resulting in a more explosive reaction during the upward move after the CPI report.
The AI Sector bouncing strongest on this move.
Memes are the weakest this time.
Just low timeframe noise or nature healing?
Could also easily be explained that the other coins were shorted more so reacted more explosive during this move up after CPI. pic.twitter.com/HyeSB8EmFE
— Daan Crypto Trades (@DaanCrypto) May 15, 2024
Indeed, the Near Protocol (NEAR) price is up 9% today, trading around $7.59, while Render (RNDR) price has surged 8%, trading around $10.83. This positive momentum raises the question of whether the AI crypto sector is poised for a boom following the favorable CPI news.
Source: CoinMarketCap/AI
The integration of AI technologies into blockchain projects could potentially drive growth in this sector, as it looks the crypto market recognizes the transformative potential of these innovations.
Top Artificial Intelligence (AI) Cryptos 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 the CPI report news. One project garnering attention is WienerAI (WAI), a new AI meme coin highlighted by crypto analyst Michael Wrubel, who has over 312k subscribers on YouTube.
Wrubel praised WienerAI’s robust staking options, noting that over 79% of the 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 presale within the first few weeks, combining the appeal of AI and meme coins.
Another AI crypto coin with potential is 5th Scape (5SCAPE), aiming to build an integrated AR and VR gaming ecosystem, complete with hardware like VR glasses.
The project has successfully raised $5.9 million in its presale, with a soft-cap set at $15 million. The 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, thereby appealing broadly to both gamers and developers.
Conclusion
The recent CPI report, indicating a lower-than-expected inflation rate of 3.4%, has injected optimism into the cryptocurrency market today. Bitcoin and altcoins prices, particularly those considered as AI crypto coins, have experienced notable price surges.
As traders seek to figure out the best Artificial Intelligence (AI) cryptos to buy now, projects like WienerAI and 5scape are garnering attention for their offerings and strong presale performance. The market’s reaction suggests that AI cryptocurrencies could be well-positioned for growth as crypto investors are preparing for the next pump in this bull run.
Related
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