#CryptoCPIWatch Crypto markets closely monitor the U.S. Consumer Price Index (CPI) as it provides insights into inflation trends, which directly impact Federal Reserve interest rate decisions. Higher-than-expected CPI often leads to fears of tighter monetary policy, typically bearish for risk assets like cryptocurrencies. Conversely, lower CPI numbers may fuel bullish sentiment, as they suggest a potential pause or cut in interest rates. Bitcoin and Ethereum tend to react sharply to CPI releases, with increased volatility around the data announcement. Traders use CPI to gauge macroeconomic pressure, aligning their strategies accordingly. Thus, CPI remains a critical data point for crypto investors globally.