The CPI data to be released next Tuesday is a key indicator, directly related to the Federal Reserve's interest rate cut expectations.

If inflation is lower than expected, the Federal Reserve may cut rates, putting pressure on the dollar, and strong liquidity will favor cryptocurrencies; conversely, if the data meets or slightly exceeds expectations, it may suppress rate cut expectations.

Two scenarios:

1. Data is worse than expected (bullish): High volatility cryptocurrencies may lead the market.

2. Data meets/slightly exceeds expectations (bearish): The cryptocurrency market may experience initial suppression followed by stabilization.

The sharp volatility at the initial release of data is often dominated by algorithmic trading, which can create short-term noise. If the data is positive but the dollar strengthens and U.S. treasury yields rise, it indicates the presence of hidden risks, and decisive stop-loss measures should be taken.$BTC $ETH