With the release of the U.S. Consumer Price Index (CPI), Bitcoin traders are closely monitoring potential signals from the Federal Reserve regarding future policy adjustments. This crucial data affects cryptocurrencies like Bitcoin and Ethereum, impacting market liquidity and risk appetite. The Bureau of Labor Statistics releases the CPI, with traders looking to FOMC members for hints on Fed policy decisions that may affect cryptocurrency markets. **CPI outcomes impact financial markets,** potentially altering expectations around potential rate cuts, which could significantly influence cryptocurrencies like Bitcoin. This data is vital for determining future Fed actions and their corresponding effects on financial markets. **Bitcoin and Ethereum prices are particularly sensitive to changes in inflation.** Cryptocurrency exchanges often see increased activity as the CPI is released, providing insights into institutional investor behavior, reflecting heightened sensitivity to macroeconomic news.