Analyst Gu Jingci: Evening CPI data will be released, and the market needs to be monitored closely.

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Follow Weibo analyst Gu Jingci, focusing on mainstream coin guidance and layout. Bitcoin/Ethereum quickly dipped after yesterday's early session and immediately followed by a rapid rise, currently continuing to consolidate and fluctuate. Pay close attention to the impact of the evening CPI data on the crypto market. If the data exceeds expectations, then inflation is high, which is bearish for the overall crypto market. CPI greater than 3.6%, core CPI month-on-month greater than 0.2%. Inflation rebound, the market will lower interest rate cut expectations, even re-evaluate rate hikes. The strong dollar and rising U.S. Treasury yields will lead to capital withdrawing from volatile cryptocurrencies, making BTC and ETH prone to rapid declines, with significant short-term selling pressure and sharp volatility expansion.

If the CPI data meets expectations, 3.6%/core month-on-month 0.2%, neutral. The market has likely priced in this outcome in advance and will probably experience slight fluctuations, quickly digesting without a significant unilateral trend. The market will more likely continue its existing trend, with quick spikes returning to sweep stop losses in the short term. If the data falls below expectations, then inflation will fall, favorable for the crypto market. Overall CPI less than 3.6%, core CPI below 0.2%. Then inflation will cool, and the market will bet that the Federal Reserve will cut rates faster, with U.S. Treasury yields declining and capital flowing into risk assets. BTC and ETH are likely to experience a wave of rebound, and altcoins will appreciate even more.

We're here every day, not to prove how high our win rate is, but just to let you know that our team is always here, monitoring the market around the clock, professional and reliable. Analysis and strategies are for reference only, and risks are to be borne by you. The publication of articles does not guarantee timeliness, please refer to real-time data!For more strategies, follow Weibo: Analyst Gu Jingci

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