BTC trades as a liquidity asset, not just a risk asset. CPI affects Fed expectations causing Rate cuts/delays impacting Dollar, Yields and consequently $BTC Higher inflation would lead to Fewer rate cuts Stronger #USD Higher bond yields Risk assets sell Whereas Lower inflation: Rate cuts more likely USD weakens Yields drop Risk assets pump Today Bullish scenario If CPI comes in: MoM ≤ 0.2% YoY below expectations Then Expect: #DXY drop Yields down BTC spike up 2–5% quickly Shorts squeezed Crypto reacts fast often within seconds However its Bearish If CPI: MoM ≥ 0.4% YoY above 2.6–2.7% Then Expect: Yields spike DXY rallies BTC dip 2-5% Liquidity sweep below local lows Hot prints hurt crypto.
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#CPI Matters for #BTC
BTC trades as a liquidity asset, not just a risk asset.
CPI affects Fed expectations causing Rate cuts/delays impacting Dollar, Yields and consequently $BTC
Higher inflation would lead to
Fewer rate cuts
Stronger #USD
Higher bond yields
Risk assets sell
Whereas Lower inflation:
Rate cuts more likely
USD weakens
Yields drop
Risk assets pump
Today Bullish scenario
If CPI comes in:
MoM ≤ 0.2%
YoY below expectations
Then Expect:
#DXY drop
Yields down
BTC spike up 2–5% quickly
Shorts squeezed
Crypto reacts fast often within seconds
However its Bearish If CPI:
MoM ≥ 0.4%
YoY above 2.6–2.7%
Then Expect:
Yields spike
DXY rallies
BTC dip 2-5%
Liquidity sweep below local lows
Hot prints hurt crypto.