#CryptoCPIWatch

Is inflation really decreasing? And how will this affect crypto and the markets?

Tomorrow, Wednesday, the U.S. Bureau of Labor Statistics will announce inflation data, and all eyes are on the Consumer Price Index (CPI). Predictions indicate that it will drop to 2.9% from 3.0%, and core inflation will reach 3.2% from 3.3%. This is the first double decline since July 2024, and it's very significant.

If these numbers come in lower than expected, the market might interpret this as inflation cooling down, and then the Federal Reserve may start to lower interest rates faster, possibly as soon as June. This would weaken the dollar, and the price of Bitcoin and other cryptocurrencies could soar.

But if the numbers come in higher than 3.0%? Then the Fed will continue its restrictive policy, and the dollar will strengthen, while stocks and crypto may decline.

There is also a risk from Trump's trade policies that could bring back inflationary pressures through new tariffs, making rate cuts more difficult.

Currently, the market is in a waiting position, especially for Bitcoin and ETHEREUM.

The upcoming inflation data is not just numbers... it could change the entire market direction. Investors need to prepare for two scenarios: either a strong rally or a severe correction.