#CryptoCPIWatch

Crypto markets closely watch the Consumer Price Index (CPI) as it signals inflation trends, which influence Federal Reserve interest rate decisions. A higher-than-expected CPI may trigger rate hikes, often leading to a drop in risk assets like Bitcoin and altcoins. Conversely, lower CPI readings can boost crypto prices as investors anticipate looser monetary policy and increased liquidity. Traders react swiftly to CPI data releases, making them high-volatility events. As crypto matures, its correlation with macroeconomic indicators like CPI has strengthened. Investors monitor these numbers to adjust positions, hedge risks, and anticipate broader market sentiment shifts impacting digital asset valuations.