The Consumer Price Index (CPI), a key measure of inflation, is closely watched by crypto investors as it influences market sentiment. Rising CPI often signals higher inflation, prompting central banks to adjust interest rates, which can pressure risk assets like cryptocurrencies. Conversely, stable or declining CPI may encourage investment in crypto by easing concerns over monetary tightening. Recent trade war easing between the U.S. and China has helped stabilize inflation expectations, potentially supporting crypto market confidence. However, crypto remains sensitive to CPI shifts, as they impact investor risk appetite and the broader economic environment.
