#CryptoCPIWatch The Price Index (CPI) measures inflation by tracking changes in essential goods and services prices month-over-month. when CPI rises, indicating inflation, cryptocurrency prices m ay drop.

Here's why:

(1) Reduced Disposable Income: As prices increase, people prioritize necessities over investment, reducing demand for Cryptocurrencies.

(2) Tighter Monetary Policy: Central Banks may raise interest rates to control inflation, making traditional investments more attractive and reducing crypto prices.

(3) Inverse Relationship: Historically, when CPI increase, Cryptocurrency prices tend to fall, contrary to common perception of Cryptocurrencies as a hedge against inflation.

Keep in mind that the relationship between CPI and Cryptocurrencies is complex and still evolving, with limited historical data to predict future trends