@trevorblack
On global inflation data release days, particularly U.S. CPI or PCE announcements, crypto markets often mirror reactions in traditional risk assets. Higher-than-expected inflation usually strengthens expectations of monetary tightening, pushing crypto prices lower due to risk-off sentiment. Conversely, softer inflation data often fuels rallies as investors anticipate looser policy or delayed rate hikes. Short-term volatility spikes around release times, reflecting uncertainty and algorithmic trading. Over the long run, persistent inflationary pressures may reinforce Bitcoin’s narrative as a hedge against fiat debasement, though correlations with macro markets remain fluid. Thus, crypto’s reaction depends on both immediate expectations and evolving narratives.
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