🔥Tonight's CPI release sets the crypto market on fire! Expectations of a Fed rate cut face the ultimate test, where will BTC/ETH head?
📉 Key Data Preview
CPI Forecast:
Overall CPI: Expected to increase by 2.8% year-on-year (previous value: 2.7%) and 0.2% month-on-month.
Core CPI: Excluding energy and food, expected to increase by 0.3% month-on-month (previous value: 0.2%).
Risk Points: If the actual data exceeds expectations, the probability of a Fed rate cut in September will plummet, and the crypto market could see a sell-off.
🌪️Market Status: Intense bull-bear tussle
BTC: Currently trading at $118,525, breaking through a triangle consolidation pattern. Technically bullish, but support at $116,817 must be maintained.
ETH: Strongly broke through $4,300, reaching a new high since 2021 (+21% weekly gain), boosted by Fed Vice Chairman Bowman's remarks on "three rate cuts this year."
Whale Movements:
Surge in hedging demand: Institutions snapped up $115,000-$118,000 BTC put options to protect against CPI data black swan events.
ETF Fund Movements: Blackrock's Bitcoin ETF saw a single-day outflow of $292 million, and the Ethereum ETF saw an outflow of $375 million, but the panic lasted only two days.
⚡Historical Lessons: How does CPI affect crypto?
High Inflation Case: When the CPI reached 9.1% in 2022, BTC plummeted 20%.
Interest Rate Cutting Cycle: During the Fed's 2019 rate cuts, BTC surged nearly fourfold!
Current Correlation: The correlation coefficient between the S&P 500 and BTC volatility reached 0.7, indicating that traditional macroeconomic policies have become a core variable in crypto pricing.
🛡️How should traders position themselves?
Hedging Strategies:
Short-Term Put Options ($1 $15,000-$118,000) to hedge downside risk.
Stablecoin safe haven: Increase USDT/USDC holdings ahead of the CPI release.
Technical Signals:
If BTC holds $116,817, a move to $122,000 is possible; if it fails, it could test $111,000.
ETH support is $4,000, resistance is $4,500.
💡Federal Reserve internal divisions intensify
Dovish: Vice Chairman Bowman strongly supports "three rate cuts this year," stating that a worsening job market outweighs inflation risks.
Hawkish: White House economic advisor Miran joins the Fed, Trump pressures rate cuts, and the policy game intensifies.
📅Catalysts for the next two weeks
Potential impact of date events: August 15th, SEC vs. Ripple's final settlement report. XRP liquidity may explode. The first XRP ETF approval deadline is on September 9th, creating a new channel for institutional entry. The Federal Reserve's interest rate cut on September 17th will result in a crypto frenzy.
💬Tonight's topic: Are you long or short? Share your trading strategies!
Follow real-time updates: This post will continuously update with CPI data updates and institutional interpretations!
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