#CryptoCPIWatch Inflation Signals: High CPI readings indicate rising inflation, which can lead the Federal Reserve to raise interest rates. This often puts pressure on risk assets, including crypto.

Interest Rates: Crypto markets tend to react negatively to expectations of rate hikes and positively to expectations of rate cuts or dovish Fed policies.

Market Volatility: CPI release days are often highly volatile for Bitcoin, Ethereum, and other major coins, especially if the data comes in significantly above or below expectations.

Typical Market Reactions:

Higher-than-expected CPI: Bearish for crypto (rate hikes more likely).

Lower-than-expected CPI: Bullish for crypto (rate cuts or continued easing possible).