Monthly Change in the US Consumer Price Index (CPI)

The "Monthly Change in the US Consumer Price Index (CPI)" indicator tracks inflation changes by measuring the average variation over time in the prices paid by urban consumers for a basket of goods and services. This metric is essential for understanding inflationary trends and their impact on purchasing power.

When analyzing the CPI in relation to Bitcoin, it's observed that negative values in the index often coincide with low points in Bitcoin's price. This phenomenon indicates that, in times of reduced inflation or deflation — when the purchasing power of traditional currency strengthens — Bitcoin may become particularly attractive as a store of value, which can lead to an increase in its price.

Conversely, periods of high inflation can result in greater volatility in Bitcoin's price, as investors seek alternatives to preserve their capital. Therefore, understanding variations in the CPI is crucial for Bitcoin investors, offering insights into potential price movements in response to fluctuations in consumer purchasing power.