#CryptoCPIWatch #CryptoCPIWatch The impact of CPI on cryptocurrencies

If cryptocurrencies correlate with stocks, what is the impact of CPI on cryptocurrencies? During times of economic stress, cryptocurrencies are affected. Most recently, the pandemic and surrounding issues have caused significant volatility in cryptocurrency prices. Using CPI as an indicator, we can make informed predictions about the risks or benefits of cryptocurrencies.

Cryptocurrency, like other trading assets, can be a risky investment. We can use CPI and its subcategories to determine volatility in the cryptocurrency market.

Some categories, such as energy and food, are more closely related to cryptocurrencies than others. These categories are essential needs, and people regularly spend money on energy and food. If their prices increase, people will have less income to spend on cryptocurrencies - as demonstrated in chart b