#CryptoCPIWatch Today's US Consumer Price Index (CPI) data release is crucial for cryptocurrency markets, particularly Bitcoin. Here's what you need to know¹ ²:

- *CPI Forecast*: The US CPI forecast is 2.3%, compared to the 2.4% recorded in March. A softer print could boost hopes of interest rate cuts, potentially weighing on the dollar and boosting crypto prices.

- *Market Impact*: A higher-than-expected CPI number might strengthen the dollar and weigh on crypto prices. Conversely, a lower-than-expected reading could lead to increased calls for the Fed to cut rates, potentially boosting Bitcoin and other risk assets.

- *Bitcoin's Reaction*: Bitcoin recently touched $105,700 before retreating by 3%. Analysts see the $100,000 mark as a critical psychological and liquidation level, with over $3.4 billion in long positions exposed to downside risk if selling pressure continues.

- *Institutional Demand*: Despite the dip, institutional demand for Bitcoin remains strong, with corporations acquiring over 157,000 BTC in 2025. ETFs are also reinforcing Bitcoin's dominance, with $934 million in net inflows over the past month.

Other key economic indicators to watch this week include:

- *Initial Jobless Claims*: A drop in initial jobless claims could signal a healthier employment outlook, potentially weighing on risk-on assets like Bitcoin.

- *Producer Price Index (PPI)*: A hot PPI or weak consumer sentiment data could trigger short-term crypto pullbacks amid inflation fears and policy uncertainty.

- *Consumer Sentiment*: The May 16 preliminary data will be crucial in gauging sentiment shifts, with reduced consumer spending potentially limiting liquidity for risk assets like crypto.