#CryptoCPIWatch Why does it matter for cryptocurrencies?

Although the CPI is a traditional macroeconomic indicator, it has a significant impact on Bitcoin and other cryptos:

1. High inflation → Restrictive monetary policy (hawkish): The Fed could raise rates. This is usually negative for crypto.

2. Low or moderate inflation → More flexible policy (dovish): This can be positive for risk assets like crypto.

How does it affect the crypto market?

Before the CPI: Anticipated volatility. Many traders adjust their positions.

After the CPI: If inflation comes in higher than expected, there are usually sell-offs in BTC, ETH, etc. If it is lower, it can trigger rises.

Altcoins and DeFi tokens tend to react with greater volatility than BTC.

How to monitor (CPI Watch)?

Key dates: The CPI is published around the 10th-15th of each month.