#CryptoCPIWatch #CryptoCPIWatch The Impact of CPI on Cryptocurrency

If cryptocurrency is correlated with stocks, what is the impact of CPI on cryptocurrency? During times of economic stress, cryptocurrency is affected. Most recently, the pandemic and surrounding issues have caused significant price volatility in cryptocurrency. Using CPI as an indicator, we can make informed predictions about the risks or benefits of cryptocurrency.

Cryptocurrency, like other trading assets, can be a risky investment. We can use CPI and its subcategories to identify volatility in the cryptocurrency market.

Some categories, such as energy and food, are more related to cryptocurrency than others. These categories are essential needs, and people regularly spend money on energy and food. If their prices rise, people will have less income to spend on cryptocurrency - as shown in the chart below.