#CryptoCPIWatch

Remember one thing: inflation is your enemy, and CPI (Consumer Price Index) is its mirror.

CPI shows how much prices for goods and services are rising. If CPI is rising, it means your money (in fiat) is losing value. That’s why cryptocurrency, especially Bitcoin, is often seen as a hedge against inflation.

But it’s not that straightforward. The crypto market is very sensitive to economic news, particularly CPI data.

Why?

Because this data influences the Federal Reserve's (the Fed's) decisions on interest rates.

• High CPI = likely increase in rates = less money in circulation = crypto falls.

• Low CPI = chances of rate cuts = more liquidity = crypto rises.

What is important for a beginner to know?

1. Keep an eye on CPI release dates — usually the middle of each month.

2. Watch the market reaction, not just the numbers. Sometimes the market has already 'priced in' the data in advance.

3. Don’t trade impulsively during news. Volatility is crazy — first up, then down, then back up. This can wipe out your deposit.

4. CPI is just one piece of the puzzle. Always look at the context — geopolitics, Fed decisions, overall state of the economy.