Crypto Markets Slide as CPI Looms and Policy Efforts Stall

Crypto markets moved lower ahead of the latest Consumer Price Index release, according to Decrypt, as traders positioned around a key inflation update. The selloff came alongside fresh policy friction in Washington, where crypto tax bills hit a wall in the House, while DeFi protocol Morpho closed one of the largest funding rounds the sector has seen in some time.

The market reaction matters because CPI data is closely watched by investors across risk assets, including crypto. Inflation readings can shape expectations around interest rates and liquidity conditions, which often influence appetite for volatile assets such as Bitcoin, Ethereum, and broader digital asset markets.

On the policy front, the stalled crypto tax bills highlight the continuing difficulty of moving digital asset legislation through Congress. For companies, builders, and investors, tax clarity remains a central issue because it affects reporting obligations and the broader compliance environment for crypto activity in the United States.

Morpho’s financing provided a separate signal for decentralized finance. While the broader market was under pressure, the round suggested that investors are still willing to back infrastructure and lending-focused projects within DeFi when they see long-term potential.

Taken together, the day’s developments showed a crypto market caught between macro pressure, unresolved regulation, and selective venture interest. The sector remains sensitive to inflation data and policy outcomes, even as individual projects continue to attract capital.