Follow and stay tuned for great profits. Hello everyone, I am Analyst Gu Jingci, sharing my insights here and hoping that every follower can achieve good returns!
After yesterday morning's rapid dip, Bitcoin/Ethereum quickly rebounded and are now consolidating in a sideways range. Pay close attention to tonight's CPI data and its impact on the crypto market. If the data exceeds expectations, it indicates higher inflation, which would be negative for the industry as a whole—specifically if the overall CPI is above 3.6% or the core CPI monthly rate is above 0.2%. With inflation rebounding, the market will lower expectations for a rate cut and may even price in a rate hike. The US dollar will strengthen, US Treasury yields will rise, and funds will exit highly volatile cryptocurrencies. BTC and ETH may experience a rapid drop, increased short-term selling pressure, and significantly amplified volatility.
If the CPI data meets expectations at 3.6%/core monthly rate of 0.2%, it is considered neutral. The market has already priced in this outcome, so it's likely there will be only mild fluctuations and a quick digestion of the news, rather than a major one-sided trend. The market will mostly maintain its existing trajectory, with quick wicks triggering stop-losses in the short term. If the data is below expectations, indicating easing inflation and benefiting the crypto market, a total CPI below 3.6% and core CPI below 0.2% would signal cooling inflation. The market would then bet on a faster Fed rate cut, US Treasury yields would fall, and funds would flow into risk assets. BTC and ETH could see a rebound rally, and altcoins would show even stronger gains.
