#CryptoCPIWatch #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). Expectations suggest it will drop to 2.9% instead of 3.0%, and the core inflation will reach 3.2% instead of 3.3%. This is the first double decrease since July 2024, and it is very important.

If these numbers come out lower than expected, the market might interpret this as inflation cooling down, and then the Federal Reserve could start lowering interest rates faster, possibly from June. This will weaken the dollar, and the price of Bitcoin and other currencies could soar.

But what if the numbers come out 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, which could bring back inflationary pressures through new tariffs, making it harder to lower interest rates.

Right now, the market is in a wait-and-see mode, 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:

a strong rally or a violent correction.