$BTC The CPI (Consumer Price Index) report of the United States is always an important factor affecting the Crypto market, due to the relationship between inflation, the Fed's monetary policy, and investment flows. Below are the key points:
The impact of CPI on interest rate policy: When CPI rises higher than expected, the Fed tends to tighten monetary policy by raising interest rates to control inflation. This strengthens the USD, reducing the attractiveness of risky assets like Crypto. Conversely, a CPI lower than expected may boost expectations for the Fed to lower interest rates, facilitating the flow of money into the Crypto market.