A recent report from Coinbase reveals that the macro environment continues to play a significant role in shaping crypto performance. Analysts David Han and David Duong point to the recent surge in bitcoin prices following a softer-than-expected inflation report as evidence of macro-led market drivers. According to the report, the 3.4% year-on-year inflation figure aligns with their view of a disinflationary trend that could lead to lower inflation by year-end.

However, the analysts also express concerns about persistent inflationary pressures, particularly in the shelter sector. Additionally, they note that last month's stagnant retail sales figures suggest that the economy may be reaching its peak. Following the inflation report, market expectations for future interest rate cuts have shifted, with a 29.2% chance of a rate cut predicted for the July FOMC meeting and a 49.7% chance for the September meeting.

The report also highlights that interest rate traders anticipate a 91.3% chance of no rate change at the June meeting. Furthermore, the CME's Fed Fund futures are pricing in two rate cuts by the end of the year, which the analysts believe is appropriate given the current market conditions. The largest digital asset by market cap has maintained its position above $66,000, with a 0.49% increase over the past 24 hours to trade at $66,441. Meanwhile, the GM 30 Index, which tracks the top 30 cryptocurrencies, fell 3.06% to 135.67 over the same period.