How does the CPI index affect #BONK/USDT

From this data, we can clearly see that the Federal Reserve's interest rate hike cycle, as a way to shrink the balance sheet, has a much greater (limited) impact on BTC prices than CPI data. In fact, when CPI data decreases, BTC prices tend to increase. Considering these factors, this makes reasonable sense:

Bitcoin is also considered a speculative asset and a hedge against the devaluation of currency. This perspective arises from the limited use of Bitcoin in the economy (less than 2%) compared to the widespread use of the US dollar.

Conversely, before the Federal Reserve's interest rate hike cycle, when money is "cheap", Bitcoin is more likely to attract higher-risk investment flows.

However, as the Federal Reserve continuously raises interest rates to curb inflation, Bitcoin's limited supply has offset this impact. As of October 2024, after the fourth halving event in April 2024, 94.13% of the BTC supply will be available at an inflation rate of 0.84%.

It can be said that Bitcoin is not only a hedge against inflation but also a hedge for central banks. This becomes evident when Bitcoin rises 9.5% during the crisis in the US regional banking sector.$BTC $ETH $BNB