#CryptoCPIWatch 📉 What does the new inflation report (CPI) mean for the crypto market?

A simple summary to understand how the economy affects your digital investments

🔍 What is happening?

Inflation in the U.S. seems to be decreasing a bit. The new CPI report shows an overall inflation rate of 2.9%, lower than last month's 3.0%. Core inflation (which excludes food and energy) also slightly decreased to 3.2%.

💡 Why does this matter?

The Federal Reserve (Fed) makes decisions about interest rates based on this data. If inflation goes down, they might lower rates, which benefits risk markets like cryptocurrencies.

📊 Possible scenarios:

If inflation is lower than expected:

More likely they will lower rates soon (June or July).

The dollar weakens.

Bitcoin, Ethereum, and altcoins rise.

If inflation rises more than expected:

The Fed keeps rates high.

The dollar strengthens.

Crypto and stocks fall.

⚠️ And what does Trump have to do with it?

Trump's new trade policies (more tariffs) could cause import prices to rise, which might push inflation back up. This would put pressure on the Fed and could slow down rate cuts.

💰 Current state of the crypto market:

Bitcoin: rising

Ethereum: rising

XRP and Dogecoin: rising

Solana and Cardano: with slight declines

But there are significant outflows of money in crypto funds: $876 million left in the last week. This shows uncertainty and possible volatility.

📌 Quick conclusion:

The CPI report could significantly move the markets. If inflation continues to decrease, the crypto winter might start to thaw. But if it spikes, it will get colder. Stay alert, diversify, and avoid impulsive decisions.