๐ฅ CPI is Down = Inflation is Lower
When the **CPI (inflation rate)** drops **more than expected**, it means **prices aren't rising as fast**. Thatโs good news for the economy โ and for crypto.
๐ Lower Inflation = ๐ฆ Fed Might Cut Interest Rates
>The **Federal Reserve** (U.S. central bank) uses interest rates to fight inflation.
>If inflation is **under control**, the Fed doesnโt need to keep **rates high**.
>Lower interest rates = more money flowing in the market.
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๐ฐ More Money = Crypto Gets a Boost
* When interest rates go down:
>People are more willing to **invest in riskier assets**, like **Bitcoin, Ethereum**, etc.
> Big investors may move money from **bonds or savings** into **crypto**.
>The **U.S. dollar may weaken**, and people often buy crypto as a **hedge**.
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โ Bottom Line:
**Lower CPI = Lower inflation = Higher chance of interest rate cuts = Good for crypto prices**