The Consumer Price Index (CPI) just dropped — and yes, crypto reacted instantly.
📊 Latest CPI (Jan 2026 Release)
Headline CPI: 2.4% YoY (lower than 2.5% expected)
Core CPI: 2.5% (matched estimates)
BTC Reaction: Pumped above $69,000, testing $70,300 resistance
Cooler inflation = stronger hopes for Fed rate cuts = more liquidity 💧
And liquidity is fuel for crypto.
🔥 Why CPI Matters for Crypto
CPI influences decisions by the Federal Reserve.
🟢 Cool CPI (Lower Than Expected)
Rate cuts more likely
Dollar weakens
Crypto = Bullish
🔴 Hot CPI (Higher Than Expected)
Rates stay high
Dollar strengthens
Crypto = Bearish
📌 What Smart Traders Watch
1️⃣ Headline vs Core CPI
2️⃣ MoM vs YoY numbers
3️⃣ The US Dollar Index (DXY) reaction
4️⃣ Rate expectations via the CME FedWatch Tool
⚠️ Remember: Volatility spikes at 8:30 AM ET. Moves happen in seconds.
CPI isn’t just “economic news.”
It’s a liquidity signal for the entire crypto market.
Are you positioned for the next CPI move — or reacting after the pump? 👀📊
Follow for more macro + crypto breakdowns.