#CryptoCPIWatch It seems like you're interested in tracking cryptocurrency inflation and purchasing power over time, specifically through the lens of CryptoCPIWatch. Here's what I found:
*What is CryptoCPIWatch?*
CryptoCPIWatch is a conceptual framework designed to monitor price changes of goods and services denominated in cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). It aims to measure the real-world value retained or lost over time.
*How Does it Work?*
- *Basket of Goods*: Tracks a diverse set of commonly purchased items, such as food, electronics, and services, that can be bought with crypto.
- *Price Data Collection*: Gathers prices from merchants and decentralized marketplaces accepting crypto payments.
- *Comparison Over Time*: Analyzes price fluctuations in crypto terms to help users understand asset appreciation or depreciation.
*Why Does it Matter?*
- *Real Value Awareness*: Helps crypto holders see whether their assets are losing purchasing power.
- *Better Financial Planning*: Enables smarter decision-making for savings and spending in crypto.
- *DeFi & Web3 Integration*: Could serve as a key metric in decentralized finance apps for lending, borrowing, and investment strategies.
In the context of current events, the US CPI report is expected to drop tomorrow, which might impact cryptocurrency markets. If inflation cools down, it could lead to rate cuts, potentially boosting crypto prices. Conversely, if inflation rises, the Federal Reserve might stay hawkish, causing crypto prices to drop ¹.
