#CryptoCPIWatch
What is CryptoCPI?
CryptoCPI is a modern metric aimed at tracking the impact of economic inflation (like the Consumer Price Index CPI) on the cryptocurrency market. While the traditional CPI measures changes in the prices of goods and services, CryptoCPI attempts to measure how cryptocurrencies react to inflation and whether they serve as a 'hedge' against it like gold or not.
How does it work?
CryptoCPI relies on comparing inflation data in the economy (such as rising food and energy prices) with the price movements of cryptocurrencies like Bitcoin and Ethereum. If inflation rises and cryptocurrency prices increase at the same time, it may be understood that cryptocurrencies are being used as a tool for value protection.
Why is it important?
It helps investors understand the relationship between the real economy and the digital economy.
It shows whether cryptocurrencies are affected by inflation like fiat money or resist it.
It can be used as an indicator for making smart investment decisions during times of economic instability.
