🔥 US CPI to be released tonight! How will it affect the Fed + crypto market? Quick look at strategies!🔥

Hello, crypto players! The US CPI data will be released tonight at 8:30 PM (Eastern Time), this is a 'nuclear' indicator that decides the Fed's policy shift! As an experienced player in the crypto space, you must prepare in advance to seize volatility opportunities! Below, I will explain the logic and strategies in detail 👇

💡 Why is CPI data so important?

CPI is the core indicator for measuring inflation, directly determining whether the Fed will raise or cut rates!

Higher than expected (for example, 3.5%) → Inflation pressure rises → The Fed may delay rate cuts or even raise rates → Negative for risk assets (Bitcoin may plummet).

Lower than expected (for example, 2.8%) → Inflation cools down → Rate cut expectations soar → Liquidity injected into the market → Bitcoin, Ethereum may surge.

⚠️ Key point: Current market expects May CPI year-on-year 3.3% (previous 3.2%), if data deviates from expectations, volatility will spike! 🏦 The Fed's 'thoughts' and their connection to crypto.

Powell has recently emphasized 'data-driven decisions', with CPI as the core basis!

1. Rate cut threshold: If CPI is below 3% for three consecutive months, the Fed may ease and cut rates (current prediction is once this year).

2. Policy independence: Trump pressures for rate cuts (pressure from refinancing $9.2 trillion debt), but Powell insists on 'not yielding', increasing policy uncertainties.

3. Balance sheet reduction impact: If the Fed continues to reduce its balance sheet (decreasing liquidity), the crypto market will face short-term pressure.

Crypto linkage logic: Rate cuts = USD depreciation + influx of funds into high-risk assets → BTC/ETH soar! Conversely, risk aversion rises → funds withdraw.

📈 Crypto market: Key levels and historical volatility

Current support level for BTC: $60,000 (breaking below may test $58,000)

Resistance level: $63,000 (looking at $65,000 after breaking).

ETH benchmark: $2,900 support / $3,100 resistance.

Historical cases:

- April 2025 CPI exceeds expectations → BTC drops 2% in 4 hours.

- March CPI lower than expected → BTC rises 3.8% in a single day.

⚠️ Leverage warning: Volatility is significant during CPI release, be cautious with high leverage contracts! It is recommended to set limit orders or hedge (for example, going long on gold ETF to hedge inflation risk).

🛠️ Strategies that traders must see

1. Before the data: Reduce high-leverage positions, reserve bullets for bottom fishing/top escaping.

2. After the data:

- If CPI is lower than expected: decisively go long on BTC/ETH, target +5%-8%.

- If CPI is higher than expected: short-sell, or switch to stablecoins (USDT/USDC) for hedging.

3. Related markets: Keep an eye on the S&P 500 (correlation coefficient 0.78), if US stocks crash → crypto will follow.

🌟 Interaction time

👉 How will you operate tonight? Share your strategy in the comments!

👉 Follow me for real-time data interpretation + sharing hidden opportunities!

💬 Soul questioning: Do you think Trump would 'crash' the US stock market to lower interest rates?

🔥 Risk warning: Data volatility is high, DYOR (do your own research)! Don't forget to set stop losses~

Source: Based on Fed statements, Wall Street investment bank analysis, and historical data.#CPI数据来袭