The Consumer Price Index (CPI) and jobless claims are key economic indicators that significantly impact crypto trading. CPI measures inflation by tracking changes in the price of goods and services, while jobless claims indicate the health of the labor market. When CPI data shows higher inflation, investors may anticipate tighter monetary policy, such as interest rate hikes by central banks. This often leads to volatility in traditional markets, which spills over into the crypto market. Similarly, higher jobless claims can signal economic weakness, potentially prompting a shift toward risk-off assets. Traders closely watch these indicators to predict market sentiment, as they influence the value of fiat currencies and investor appetite for riskier assets like cryptocurrencies.
