$BTC Bitcoin Interaction Scenarios with Consumer Price Index (CPI) Data

1. CPI Index Rises Above Expectations (High Inflation)

Market Interpretation: Indicates that inflation remains a problem, which may lead the Federal Reserve to adopt a tight monetary policy (keeping interest rates high or raising them).

Bitcoin Reaction: The price often declines.

Reason: Tight monetary policies reduce liquidity in the markets, which harms high-risk assets like Bitcoin.