#CryptoCPIWatch Why Does CPI Matter for Crypto?

1. Inflation Hedge Narrative: Bitcoin and other cryptocurrencies are often seen as hedges against inflation. When CPI rises, some investors flock to crypto to protect their wealth.

2. Market Volatility: CPI data releases can cause significant price swings in both traditional and crypto markets. Traders often react to inflation trends and central bank responses.

3. Liquidity and Risk Sentiment: High CPI may lead to tighter monetary policy, reducing liquidity and increasing risk-off sentiment. This can impact crypto prices.