#CPI&JoblessClaimsWatch

The drop in U.S. CPI to 2.4% is definitely notable—it’s a bigger-than-expected decline, which signals that inflation is cooling faster than anticipated. That’s generally bullish for crypto, since lower inflation increases the likelihood of the Fed cutting interest rates. And as we’ve seen historically, looser monetary policy tends to fuel risk-on assets like Bitcoin and other digital assets.

That said, the backdrop of rising U.S.-China trade tensions adds some complexity. Geopolitical uncertainty can be a double-edged sword for crypto. On one hand, it could reinforce crypto’s appeal as a hedge against traditional financial systems and macro instability. On the other, it could dampen global investor sentiment more broadly, leading to risk-off behavior in the short term.

So overall, I’d say this CPI print is bullish for crypto in the medium term, especially if the Fed pivots. But the market will likely remain volatile as it digests the implications of both monetary policy and geopolitical risks.