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.