#CryptoCPIWatch Is inflation really decreasing? And how will this affect crypto and the markets?

Tomorrow, Wednesday, the U.S. Census Bureau will announce inflation data, and all eyes are on the Consumer Price Index (CPI). Predictions say it will drop to 2.9% instead of 3.0%, and core inflation will reach 3.2% instead of 3.3%. This is the first double decline since July 2024, and this is very important.

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

But if the numbers come in higher than 3.0%? Then the Fed will continue with its restrictive policy, and at that time, the dollar will strengthen, and stocks and crypto might decline.