Next Tuesday's CPI will be the most critical barometer in recent times.

This data will directly affect whether the Federal Reserve will cut interest rates. The logic is simple: if inflation is low, the Federal Reserve may consider rate cuts, the dollar weakens, liquidity increases, and this is a significant benefit for cryptocurrencies.

There are essentially two scenarios:

1️⃣ Lower than expected: Good news, indicating that inflation is under control, liquidity is slightly loosened, and sentiment will explode. High-risk sectors will react first, such as the SOL ecosystem, RWA, and smaller layer-two ecosystem tokens, which will surge significantly.

2️⃣ About the same or slightly higher: Bad news, likely leading to an initial downturn, bringing sentiment down before gradually stabilizing.

Experience shows that the wild fluctuations in the first few seconds after the data is released are often due to algorithmic trading and bots running scripts, which can easily be false signals. The true direction usually becomes clear after 30 to 90 minutes, once U.S. Treasuries and the dollar establish a trend.

Another pitfall to be aware of — sometimes the data is good, but the dollar strengthens and bond yields rise, indicating that there are other bearish factors pressuring the market. In such cases, don’t hesitate, just cut losses and exit. The logic may be correct, but if the price doesn’t cooperate, it’s not worth holding on in such market conditions.

Remember, the market is a tool for our investment; we are not puppets of the market, and following the market is being suppressed by it! $BTC