How does the release of CPI affect the price of digital currencies?

1 answers

• subhransu pandaJun 16, 2021 · 4 years ago
  At BYDFi, we believe that the release of CPI can have a significant impact on the price of digital currencies. As inflation erodes the value of traditional fiat currencies, investors often seek alternative stores of value, such as digital assets. This increased demand can drive up the price of cryptocurrencies. Furthermore, if the CPI release indicates higher inflation than expected, it may lead to a loss of confidence in traditional financial systems, prompting individuals to explore decentralized and inflation-resistant digital currencies. However, it's important to conduct thorough research and consider other factors before making investment decisions in the digital currency market.
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