Inflation / CPI
Rise in goods prices; CPI is the key inflation gauge in US and euro area.
CPI (Consumer Price Index) measures goods basket price change YoY. Fed/ECB target: 2%. High CPI (>4%) forces rate hikes = low liquidity, crypto suffers (2022: CPI 9%, BTC -75%). Falling CPI = expected rate cuts = crypto rises (2024: CPI 2.5%, BTC +150%). Monthly US CPI (around 13th) is the biggest crypto move of the month.
In plain words
The % rise in store prices YoY. High = central bank hikes rates to cool the economy = crypto drops.
Example
June 2022: US CPI 9.1%, BTC -8% in 4h that day. Sept 2024: CPI 2.5%, BTC +5% in 24h.
Also known as: CPI, inflation