Investors eagerly anticipate the US inflation report, which could impact market risk appetite. Lower-than-expected inflation may prompt the Federal Reserve to cut interest rates, boosting risk assets like stocks and cryptocurrencies.
Do cryptocurrencies experience inflation? Yes, technically even Bitcoin experiences inflation as more of it is mined (as does gold). But because the amount of new bitcoin is automatically reduced by 50 percent every four years, Bitcoin's inflation rate will also decrease
Experts suspect that the higher the CPI, the higher the pressure on cryptocurrencies. If the CPI increases and decreases at a significant and quick rate, it's a sign of volatility in the crypto market. We can compare the value of cryptocurrency, like Bitcoin, to the US CPI.
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