Recently, has anyone noticed an interesting little pattern with $BTC? Every time before major data releases like the CPI (Consumer Price Index) or PPI (Producer Price Index), it often dips a bit first, as if feeling a bit anxious; But once the data comes out, if it’s lower than expected, it immediately surges, rising particularly fast; Conversely, if the data comes out higher than expected, increasing inflation pressure, Bitcoin drops again. Let me give a few examples: 🔹 In March 2024, the CPI data released in the U.S. was 3.5%, higher than market expectations, which led to increased expectations for the Federal Reserve to raise interest rates, putting short-term pressure on BTC prices. 🔹 In November 2023, the PPI data was 5.2%, higher than the expected 4.9%, and Bitcoin also saw a short-term decline. This actually reflects the market's sensitivity to inflation and macroeconomic conditions. CPI and PPI are important indicators for assessing inflation; when inflation decreases, market risk appetite increases, and funds are more willing to flow into assets like Bitcoin; when inflation rises, central banks may tighten by raising interest rates, leading to tighter funds, which naturally puts pressure on Bitcoin. Personally, I think that although Bitcoin is essentially a decentralized asset, it inevitably correlates with traditional markets in the face of macroeconomic influences, especially around the release of important economic data. So, for friends who want to play with Bitcoin, keep a close eye on the timing of CPI and PPI data releases, do your homework in advance, which can help you respond to fluctuations more calmly and seize opportunities for market reversals. In short, when the data comes out, don’t panic; combine market expectations with actual performance to understand the overall trend, and predicting Bitcoin's ups and downs won’t be difficult!
When Bitcoin $BTC dips ahead of CPI or PPI reports, it often rallies right after the data drops, and vice versa.
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