Tomorrow at 8:30 PM, the US July CPI data will be a key indicator in deciding whether there will be an interest rate cut in September.
For the crypto market, the impact of this data may be more direct than expected.
If the CPI data is lower than expected, indicating a cooling of inflation, the market's expectation for a rate cut in September will immediately increase.
In this case, the dollar is likely to weaken, and funds will tend to flow into higher-risk assets.
Mainstream cryptocurrencies like BTC and ETH may quickly break previous highs, and altcoins will also benefit.
Conversely, if the CPI data is higher than expected, the expectations for a rate cut will be suppressed, the dollar will strengthen, and funds may temporarily withdraw from the risk market. In the short term, this will be under pressure, but in the medium to long term, this pullback may actually present a buying opportunity.
Within one hour before and after the data release, the liquidation volume is often 3-5 times higher than usual.
A prudent approach is to reduce positions in advance and wait for a clear direction before taking action.
Remember, regardless of the data results, real opportunities are always reserved for those who are prepared.
What you need to do now is prepare your bullets, but don’t rush to enter the market.
