#CryptoCPIWatch Crypto Markets and the Inflation Report

Cryptocurrency markets remain directionless ahead of the CPI update, with Bitcoin (BTC) trading around $82,185, down 25% from its peak, and Ethereum (ETH) at $1,889, marking a 16.2% weekly loss.

Crypto investors are watching inflation data closely:

Lower inflation → Bullish for Bitcoin and altcoins as Fed rate cuts become more likely.

Higher inflation → Bearish for crypto as Fed remains restrictive, boosting the US dollar.

Current crypto market sentiment:

Bitcoin: +0.57% at $82,185

Ethereum: -1.75% at $1,889

XRP: +1.6%

Dogecoin: +2.5%

Solana, Cardano: Slight declines

Meanwhile, CoinShares' Digital Asset Fund Flows Weekly Report showed $876 million in outflows, marking the fourth consecutive week of digital asset investment outflows, further Market Volatility Ahead

The US CPI report is set to be a major catalyst for the Federal Reserve’s policy outlook, the US dollar, and risk assets like crypto and stocks. While inflation is expected to cool, Trump’s trade policies, supply chain disruptions, and market uncertainty could keep the Fed cautious.

Investors should brace for heightened volatility across all asset classes, with crypto markets especially sensitive to inflation surprises and Fed rate cut expectations.