Tonight there will be a major market volatility, which is the CPI year-on-year rate
#美国CPI数据即将公布 CPI refers to how much prices in the U.S. have increased (inflation data), and it's extremely important because the Federal Reserve uses it to decide whether to raise or cut interest rates, and interest rates directly affect high-risk assets like Bitcoin.
CPI came in higher than expected (inflation above expectations):
This means prices are rising further, and the Federal Reserve is likely to keep interest rates high or even raise them. With money becoming more expensive, people are less inclined to take risks buying assets like Bitcoin that don't generate interest, instead opting for bonds or saving money. Result: Bitcoin prices are likely to drop sharply! For example, during past periods of soaring inflation, Bitcoin dropped by over 20% in just a few days, causing leveraged traders to blow up their positions—extremely painful.
CPI came in lower than expected (inflation cooling):
This indicates that inflation is under control, and the Federal Reserve is likely to cut interest rates. Cheaper money and increased liquidity make people bolder, leading them to rush into high-return assets like Bitcoin. Result: Bitcoin is likely to surge! In recent years, whenever inflation eased, Bitcoin often doubled or more, with massive inflows from ETFs.
Simply put:
High CPI → Fed hawkish → Bitcoin gets hit (drops)
Low CPI → Fed dovish → Bitcoin soars (rises)
Of course, it's not 100% accurate—other factors like market sentiment, the Bitcoin halving, and Trump's policies also matter. But on release day, volatility is extreme, and many people are watching closely to go all-in or flee. The current expectation is 2.7%—if it comes in higher, be cautious; if lower, prepare to catch the falling knife!
