$BTC is particularly sensitive to Consumer Price Index (CPI) trends, a key inflation indicator, as they shape investor sentiment in the crypto market. When CPI signals rising inflation, central banks may tighten monetary policy, often pressuring BTC as a risk asset by reducing investor appetite for speculative investments. On the other hand, a stable or declining CPI can bolster confidence in BTC, as it suggests a more favorable environment for risk assets, encouraging inflows. The recent easing of U.S.-China trade tensions has helped stabilize inflation expectations, potentially creating a supportive backdrop for BTC’s market performance.