Which cryptocurrencies are most likely to be influenced by the release of CPI data?

3 answers

• Dec 27, 2021 · 3 years ago
  Cryptocurrencies like Bitcoin and Ethereum are likely to be influenced by the release of CPI data. As the two largest cryptocurrencies by market capitalization, they tend to be more sensitive to macroeconomic factors. When CPI data indicates higher inflation, it can lead to concerns about the purchasing power of fiat currencies, which may drive investors towards cryptocurrencies as a hedge against inflation. Additionally, CPI data can also impact the overall market sentiment, which can indirectly affect the prices of cryptocurrencies.
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• Dec 27, 2021 · 3 years ago
  The release of CPI data can have a ripple effect on the entire cryptocurrency market. While Bitcoin and Ethereum are often the most directly influenced, other major cryptocurrencies like Ripple, Litecoin, and Bitcoin Cash can also experience price movements in response to CPI data. This is because the release of CPI data can affect investor sentiment and market confidence, leading to increased buying or selling pressure across the board.
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• Dec 27, 2021 · 3 years ago
  According to our analysis at BYDFi, cryptocurrencies with strong ties to the traditional financial system, such as stablecoins like Tether (USDT) and USD Coin (USDC), are more likely to be influenced by the release of CPI data. This is because stablecoins are designed to maintain a stable value relative to a specific fiat currency, and any significant changes in CPI data can impact the perceived stability of the underlying fiat currency. As a result, investors may seek refuge in stablecoins during periods of high inflation or economic uncertainty.
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