The crypto market is currently watching the CPI data (Consumer Price Index) very closely. CPI is a clear indicator of inflation and Fed's interest rate decisions depend on this data.
When the CPI is expected to come in low, a relief rally can be seen in the market. And when the CPI is high or sticky, pressure comes on risk assets like Bitcoin and altcoins.
🔍 What is the Relation of CPI with Crypto?
CPI ↓ → In inflation control → Hope for rate cuts
Rate cuts → Liquidity increase
Liquidity increase → Crypto bullish reaction
That's why there is high volatility in the market on CPI days.
📈 What Signal Is the Market Giving Right Now?
Bitcoin is holding above strong support
Panic selling is limited
Smart money is not aggressively selling before CPI
The market is waiting for a decisive move
This behavior usually occurs when traders are waiting for data and a big move is expected after the CPI.
🚀 What Can Happen After CPI?
If CPI is better than expectations → BTC may try an upside breakout
If CPI is high → Short-term pullback possible
In the long term, the trend will depend on macro data
🧠 What Is the Smart Approach?
Stay away from emotions:
Keep leverage low
Follow key support & resistance
Wait for confirmation after CPI
Conclusion:
CPI is not just a data point; rather, it is a direction-deciding event for the crypto market. The next major move will be clear after CPI.
