What is CPI??
CPI or Consumer Price Index is one of the macro indicators that often determines the price movement of Bitcoin and other crypto assets. Although Bitcoin is called an anti-inflation asset, the price of Bitcoin does not always increase when inflation or CPI is announced to increase.
On the contrary, what often happens is that the price of Bitcoin and other crypto assets actually decreases when the CPI increases. After the CPI announcement, the price fluctuations usually only apply in the short term, it can last for days, or just a few hours.
So what is the effect of CPI on Bitcoin and crypto price movements?
- If the CPI is announced to increase, the price of Bitcoin and other crypto assets will fall.
- If the CPI remains the same or is cut, the price of Bitcoin will usually increase.
In the world of investment, high interest rates will make investors more interested in saving their money in the bank because they will get a higher interest on their savings.
Although CPI or inflation is one of the macro indicators that historically influences Bitcoin price movements.
But beyond that, there are many other factors that influence the price movements of Bitcoin and crypto assets in general;
>> including regulatory matters,
>> economic-political policies,
>> social media sentiment,
>> project update,
>> the movement of investors and cities,
>> or even Elon Musk's tweets.
For beginner investors always remember to DYOR before starting to invest.
