The US CPI data has been released, and all the published data is below expectations. CPI has fallen, expectations for easing have increased, which is favorable for Bitcoin, so all currencies surged in an instant!

Beijing time Wednesday at 20:30, the U.S. will release the May CPI data, with forecasts of a month-on-month CPI remaining at 0.2% and a year-on-year increase to 2.5%; core CPI is expected to rise to 0.3% month-on-month and 2.9% year-on-year. There are differing opinions within the Federal Reserve on the impact of tariffs; Waller believes it is a one-time increase, while Kugler is concerned about its persistence. The market expects a 45 basis point rate cut before the end of the year, with the first cut possibly in September. The U.S. Treasury will auction 39 billion in 10-year and 22 billion in 30-year bonds.

Tonight's CPI will significantly influence the trend of Bitcoin, with the relationship as follows:
CPI high → Rate hike expectations increase: If the CPI data exceeds expectations, it indicates significant inflation pressure, and the Federal Reserve may maintain rate hikes or delay rate cuts. In a high-interest-rate environment, dollar liquidity tightens, and investors tend to sell risk assets (like Bitcoin) in favor of low-risk assets like the dollar or U.S. Treasuries, putting downward pressure on Bitcoin prices.
CPI decline → Easing expectations strengthen: When CPI continues to fall, indicating easing inflation, the market will expect the Federal Reserve to possibly cut rates or maintain low rates. At this time, the attractiveness of the dollar weakens, and with loose liquidity, Bitcoin's narrative as an 'anti-inflation asset' may be reinforced, attracting funds and pushing prices higher.

Therefore, tonight's data performance should be a key focus!