#CryptoCPIWatch
Key Scenarios to Watch:
CPI Outcome Market Reaction Rate Cut Outlook
🔽 Lower than expected Stocks and crypto may rally, USD weakens, yields fall Confirms/accelerates cuts (4 or more)
⚖️ In line with forecast Slight volatility, no major shift Supports current expectations (3–4)
🔼 Higher than expected Risk-off move: stocks and crypto drop, USD strengthens Cuts could be scaled back (1–2)
📈 For Crypto (like ETH/USD):
Dovish CPI (cooling inflation) = bullish for ETH and other risk assets.
Hawkish CPI (sticky inflation) = bearish, as higher rates reduce liquidity appetite.