According to @truflation, the Truflation index started May 2024 at 1.35% and jumped sharply to 2.06% by the end of the month, indicating a notable rise in inflation pressure. Truflation data often precedes official CPI releases by 1–2 reporting periods, suggesting that upcoming CPI numbers may also trend higher. For crypto traders, this early inflation uptick could impact Bitcoin and other digital assets, as investors may seek inflation hedges. Monitoring these inflation signals is crucial for anticipating potential volatility and positioning in the crypto market (Source: @truflation, Twitter, June 2024).

According to The Stock Sniper (@Ultra_Calls), the upcoming U.S. Consumer Price Index (CPI) release scheduled for tomorrow is expected to create significant volatility in the cryptocurrency markets, especially for Bitcoin and Ethereum. Historical data shows that CPI announcements often trigger sharp price movements as traders adjust positions in response to inflation trends and Federal Reserve policy expectations (source: @Ultra_Calls, May 13, 2025). Traders are advised to closely monitor the CPI figure and market reaction, as a higher-than-expected CPI could lead to increased selling pressure, while a lower reading may boost risk appetite across digital assets.

According to Dan Held, crypto traders are subject to capital gains taxes on nominal asset appreciation, even when real returns are wiped out by inflation. He highlights that if a digital asset rises 10% but inflation is also 10%, investors realize no real profit yet must still pay taxes on the perceived gains. This tax treatment reduces after-tax returns and influences trading strategies, especially in high-inflation environments. Crypto investors should factor in inflation-adjusted returns for accurate portfolio assessments and tax planning (source: Dan Held on Twitter, May 10, 2025).

According to Edward Dowd, headline CPI is expected to fall below 2% within the next 6-12 months (source: Twitter/@DowdEdward, May 5, 2025). This forecast signals potential shifts in Federal Reserve policy, which could lead to increased liquidity and risk appetite in cryptocurrency markets. Traders should monitor CPI trends closely, as lower inflation could drive renewed capital inflows into major digital assets like Bitcoin and Ethereum, impacting short- and medium-term trading strategies.