VIDEO: The Crypto Report With Alex Benfield

The article below is a condensed transcript of the video presentation, edited for concision. The video contains additional details and several charts.

The recent consumer price index (CPI) release is affecting all markets, with crypto being no exception.

CPI increased 0.4% in the month of March. That is a significant month-over-month increase, bringing us to a 3.5% increase in CPI year-over-year. We’re certainly not down to the 2% target level that the Federal Reserve wants.

The market has been dealing with elevated interest levels for quite a while. Even worse is core CPI, which advanced 0.4% month-over-month and is up 3.8% year-over-year. Core CPI, which excludes the volatile food and energy components, is even more important to the Fed’s decision on whether to cut interest rates.

The market is currently digesting whether this inflation data will still lead to interest rate cuts later this year. It certainly seems as if the Fed will be delaying any rate cuts.

These inflation and interest rate trends affect the crypto market, but considerably less than the overall stock market. The crypto market is still benefiting from a massive tailwind that it is softening the blow of elevated inflation and rates. That tailwind is the release earlier this year of spot Bitcoin (BTC) exchange-traded funds (ETFs).

We’ve seen constant daily positive inflows into these ETFs. They are just an absolute boon to the market and certainly the reason why Bitcoin set a new all-time high before its upcoming having.

We’re about nine days away from the Bitcoin having and we’re a month removed from Bitcoin setting an all-time high.

We got Bitcoin sitting at just about $70,000 at market close on April 11. Bitcoin has been range bound for about a month after it set a high of $73,000 on March 13. We’re two days away from this being a month-long range bound trading session.

We saw Bitcoin drop by 15% from that all-time high of $73,000 to a low of $62,000 on March 19. That’s perfectly fine. In fact, this is a really great cooling off period of the market. Bitcoin had been on a heater from the fourth quarter of 2023 and all year long in 2023. But things really picked up in Q4 of 2023 and Q1 of 2024 and Bitcoin has been red hot.

We’re starting to get decent entry opportunities into some of the crypto assets that had been running away from us for months now.

In a crypto bull run, as Bitcoin moves towards setting its peak high at the end of the bull, it typically undergoes about five 30%-plus corrections along the way. We haven’t seen any of that so far in this bull market. To be honest, with this tailwind from the new ETFs, I’m not entirely sure we’ll see those 30%-plus corrections.

We got a 15% correction here, but more importantly, things have cooled off for a month. I have confidence that $62,000 is likely the low that we’ll see during this cooling off period.

Right now, I’m looking at entry opportunities into certain assets that I have been wanting to buy and reload. I have not been able to because the market has just been running away from me.

Bitcoin is one of those assets, but certainly not the only one right now. We’re at good entry opportunities for both Bitcoin and Ethereum (ETH).

ETH is down from its high of about $4,100 and it’s currently trading at about $3,500. It had hit a low of just over $3,000. That was a significant correction of 25% for ETH. I’m even more confident that ETH has bottomed out.

I’m not entirely sure why the market is as bearish on ETH as it has been lately. I’m shocked as to how a lot of people are forgetting that the SEC still has to make a decision on spot ETH ETFs next month.

We’ve seen the massive bullish effects of the Bitcoin ETFs. I don’t think the market is factoring in the good chance that these ETFs will be approved for Ethereum. There’s a very solid entry opportunity on ETH right now.

That’s it for now; thanks for watching. If you have any questions or feedback, send me an email at: