Inflation is not just an economic indicator, but a force shaping market sentiment, **crypto liquidity** and investor strategies. As CPI (Consumer Price Index) data falls, traders are closely watching how it affects Bitcoin, Ethereum, and altcoins. Here’s what to track:

📉 **High CPI = Market Volatility**

Rising inflation often leads to tightening monetary policy. If the CPI comes in higher than expected, **crypto markets may experience a short-term decline**, as investors anticipate interest rate hikes and a more cautious sentiment.

📈 **Low CPI = Bullish Signals for Crypto?**

Cooling inflation suggests potential **rate cuts** from central banks, making riskier assets like Bitcoin more attractive. Low CPI typically triggers **renewed confidence in digital assets**.