Why does $BTC dump when CPI prints hot? Simple: inflation = Fed tightens = liquidity dries up.
When CPI/PPI come in above expectations, Powell's forced to keep rates higher for longer. That means:
• Less cheap money sloshing around
• Risk assets (crypto included) get hit first
• Capital rotates to bonds/cash
• Leverage gets flushed out of the system
Crypto is a pure liquidity play. When macro liquidity contracts, we bleed. When it expands, we pump.
Track CPI/PPI release dates. Position accordingly. Don't get caught on the wrong side of a Fed pivot narrative.
When CPI/PPI come in above expectations, Powell's forced to keep rates higher for longer. That means:
• Less cheap money sloshing around
• Risk assets (crypto included) get hit first
• Capital rotates to bonds/cash
• Leverage gets flushed out of the system
Crypto is a pure liquidity play. When macro liquidity contracts, we bleed. When it expands, we pump.
Track CPI/PPI release dates. Position accordingly. Don't get caught on the wrong side of a Fed pivot narrative.