#CryptoCPIWatch

It is a term used to refer to monitoring the impact of the U.S. Consumer Price Index (CPI) data on cryptocurrency markets, especially Bitcoin. The CPI is considered a key indicator of inflation, and its results significantly affect interest rate expectations and Federal Reserve policies, which directly reflects on the performance of cryptocurrencies.

Why is the CPI important for cryptocurrency traders?

When CPI data is lower than expected, it is seen as a signal of slowing inflation, which may prompt the Federal Reserve to lower interest rates. This scenario is considered positive for high-risk assets like Bitcoin, as it could lead to rising prices. For example, in March 2025, CPI data showed a slight decrease in annual inflation to 2.8%, boosting investor optimism in the cryptocurrency market.

Technical Signals: What do market indicators say?

In March 2025, analysts noted the emergence of a positive divergence in the Relative Strength Index (RSI) for Bitcoin, as the price dropped below $80,000, while the RSI showed higher lows. This divergence is considered a signal of weakening selling momentum and the potential for a bullish reversal in trend. Additionally, reports indicated that CPI data could affect expectations for interest rate cuts by the Federal Reserve, which could support Bitcoin's recovery.