#CryptoCPIWatch The data on the U.S. Consumer Price Index (CPI) represents a crucial barometer for today's crypto market. A higher-than-expected CPI signals persistent inflation, fueling fears of restrictive monetary policies from the Federal Reserve. This often triggers sell-offs in the crypto market, viewed as a risk asset.
Conversely, a lower-than-expected CPI suggests a cooling of inflation, which could lead to more accommodative monetary policy. Such a scenario tends to stimulate interest in risk assets like cryptocurrencies, potentially triggering price increases.