CPI Inflation Report Looms: Market Implications for Cryptocurrencies
Tuesday's CPI report is expected to show persistent inflation at 2.7% annually, mirroring November's figures. Core inflation, stripping out volatile food and energy prices, may edge up to 2.7% from 2.6%, reversing distortions caused by last month's government shutdown. The Federal Reserve's 2% target remains elusive as tariff pressures persist.
Cryptocurrency markets often react sharply to inflation data, with bitcoin and other digital assets increasingly viewed as inflation hedges. A hotter-than-expected print could drive capital into store-of-value coins like BTC and ETH, while stablecoins like DAI may see reduced demand if real yields appear more attractive.
Exchange activity on Binance, Coinbase, and Bybit typically surges around macroeconomic releases. Traders should watch for volatility across major pairs, particularly BTC/USD and ETH/USD, as the data drops. The crypto market's decoupling from traditional assets may face its latest test.