Macro & Ecosystem
CPI (Consumer Price Index) explained
Consumer Price Index
Quick definition: CPI is the measure of US inflation, published monthly, and it strongly affects interest rate expectations and crypto prices.
CPI above forecast: inflation is running hot and the Fed may keep rates higher for longer, which is usually bad for risk assets like crypto.
CPI below forecast: markets expect the Fed to cut rates, which usually supports prices.
Crypto prices often swing very sharply in the minutes around the CPI release (around 7:30 or 8:30 PM GMT+7). It's wise to limit high leverage at this time.
CPI comes in at 2.9% versus a 3.1% forecast: BTC rises 3% in 15 minutes and tens of millions of dollars in Short positions are liquidated.
Related terms
Educational content for reference only, not financial advice. Leveraged trading carries the risk of losing your entire capital.