Macroeconomic data significantly impacts cryptocurrency prices. High inflation rates can make investors turn to cryptocurrencies like Bitcoin as a hedge, driving up prices. When inflation soars, traditional assets may lose value, increasing the appeal of digital currencies. 

Interest rates also play a role. Lower rates mean reduced returns on traditional savings and bonds. This encourages investors to shift funds into potentially higher - yielding cryptocurrencies, thus pushing prices up. Conversely, rising interest rates can draw capital back to traditional assets, leading to a drop in cryptocurrency prices as seen when the Fed hikes rates and crypto markets often experience sell - offs.