#CryptoCPIWatch The Consumer Price Index (CPI) measures inflation's impact on the economy, affecting cryptocurrency markets. Here's how CPI influences crypto¹:

- *Inflation correlation*: Higher CPI indicates increased inflation, potentially decreasing consumer spending power and affecting crypto prices.

- *Market volatility*: CPI announcements can trigger sharp price movements in cryptocurrencies like Bitcoin and Ethereum.

- *Federal Reserve policy*: CPI data influences interest rate decisions, impacting crypto market sentiment.

*Key Points:*

- *CPI release*: Scheduled for May 14, 2025, it may cause significant volatility in crypto markets.

- *Impact on Bitcoin*: Higher-than-expected CPI could lead to increased selling pressure, while a lower reading may boost risk appetite.

- *Trading strategies*: Traders may consider short-term hedges using options or futures to mitigate potential losses.²