Which cryptocurrencies are most affected by the release of CPI?

3 answers

• Nov 28, 2021 · 3 years ago
  The release of CPI (Consumer Price Index) can have a significant impact on the cryptocurrency market. Cryptocurrencies that are most affected by CPI tend to be those that are considered as stores of value or hedges against inflation. Bitcoin, being the largest and most well-known cryptocurrency, often experiences increased volatility in response to CPI data. Investors view Bitcoin as a digital gold and a hedge against traditional fiat currencies. Other cryptocurrencies like Ethereum, Litecoin, and Bitcoin Cash may also be influenced by CPI, but to a lesser extent. It's important to note that the impact of CPI on cryptocurrencies can vary depending on market conditions and investor sentiment.
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• Nov 28, 2021 · 3 years ago
  When CPI data is released, it can cause fluctuations in the prices of different cryptocurrencies. Cryptocurrencies that have a limited supply and are seen as a store of value, such as Bitcoin and Ethereum, are usually more affected by CPI. This is because investors view these cryptocurrencies as alternative assets that can protect against inflation. On the other hand, cryptocurrencies that are more speculative in nature, like altcoins, may not be as influenced by CPI. It's important for investors to monitor CPI data and its potential impact on the cryptocurrency market.
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• Nov 28, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, has observed that Bitcoin and Ethereum are the most affected cryptocurrencies when CPI data is released. These two cryptocurrencies have a larger market capitalization and are considered as the primary drivers of the cryptocurrency market. However, it's worth noting that other cryptocurrencies can also be influenced by CPI, especially if there are significant changes in inflation expectations. Investors should keep an eye on CPI data and its potential impact on different cryptocurrencies in the market.
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