#CryptoCPIWatch Why is inflation data important for the crypto market?

Every month, traders and investors worldwide hold their breath in anticipation of the CPI release — the Consumer Price Index in the USA. This indicator is considered a key measure of inflation, which directly influences the Federal Reserve's decisions on interest rates. And interest rates, in turn, sway the cryptocurrency market like waves.

Why is this important for crypto investors?

When inflation is higher than expected — the Federal Reserve may tighten monetary policy. This leads to a withdrawal of liquidity from risky markets, including crypto. Bitcoin and altcoins can experience sharp declines.

If inflation is lower — the market expects a loosening of policy, and cryptocurrency receives a powerful growth impulse.

How to use #CryptoCPIWatch ?

Keep an eye on the CPI release dates, analyze expectations and actual data. This will help you make more informed decisions — whether you are a hodler or an active trader.