#CryptoCPIWatch
Every serious crypto trader should be watching inflation data closely — and that’s where this #TradeLessons comes in. One of the most overlooked BTC catalysts is the monthly CPI report. When inflation runs hot, central banks like the Fed tend to tighten policy — which historically pressures $BTC and risk assets. But when CPI cools, the narrative flips.
Before the recent BTC breakout above $100K, U.S. CPI came in at 3.2% YoY, lower than expected. Markets immediately priced in potential rate cuts for later this year. Bond yields dropped, DXY weakened, and liquidity rushed back into risk-on plays — led by $BTC. We saw over $800 million in spot BTC ETF inflows in the following 48 hours.
The key #Tradelesson ? Watch CPI prints like a hawk. They shape the Fed’s stance — and Bitcoin’s volatility thrives on those pivots. Data drives narrative, and narrative drives capital flow. #TradeStories #CryptoCPIWatch