What is the CPI, and how does it affect cryptocurrencies?
The CPI (Consumer Price Index) is the thermometer that measures inflation: it tells us whether life is getting more expensive.
When this number changes, the cryptocurrency market reacts like a domino effect:
⏫HIGH CPI (High inflation): Governments raise interest rates to cool the economy. Traditional money becomes scarcer, and investors flee risk. Cryptocurrencies tend to FALL.
⏬ LOW CPI (Stable prices): The economy eases, banks lower interest rates, and investors seek gains in riskier assets. Cryptocurrencies tend to RISE.#CPIWatch $BTC


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