If you are new to the world of cryptocurrencies, you have probably heard investors talk about CPI reports as if they are as important as Bitcoin halvings and altcoin seasons. But what is CPI and why does it influence financial markets?
CPI, or Consumer Price Index, measures inflation: the rate at which the prices of goods and services increase over time. Traditional investors closely monitor CPI because it affects central banks' decisions on interest rates.
But for cryptocurrency investors, it is equally crucial. Inflation data can drive Bitcoin's rise, trigger massive sell-offs, or even change the narrative about whether cryptocurrencies are a hedge against economic instability or just another risk asset.
Now that the March 2025 CPI report has been released, let's analyze what it means for your portfolio.
