Crypto enthusiasts, take note! The U.S. CPI data is about to be released, and the cryptocurrency market may experience significant changes, so keep a close eye on your wallet!
For newcomers in the crypto space, it's important to first understand what CPI is — it's a key indicator of inflation in the United States. Once there are changes in the inflation data, the Federal Reserve's monetary policy may be adjusted accordingly, and the crypto market is often significantly affected by this.
The expected year-on-year CPI for the U.S. in July is 2.7%, lower than the previous value of 2.8%; the expected month-on-month CPI after adjustment is 0.3%, higher than the previous value of 0.2%. After the data is released, regardless of whether the result exceeds expectations or falls short, the crypto market may experience considerable volatility.
This is closely related to the crypto space: if the inflation data exceeds expectations, the Federal Reserve will likely release a “hawkish” signal, raising interest rate expectations will strengthen the dollar, and the cryptocurrency market may face capital outflow, with prices pressured downward; if the data is lower than expected, the market will likely have a “dovish” sentiment, and capital may flow into the crypto space, with mainstream coins like Bitcoin and Ethereum expected to see an increase.
The timing of the data release in U.S. time is worth paying special attention to; don't forget to convert it to your own time zone. Once the data is out, we can analyze its impact on the crypto market in real-time and determine whether to buy the dip, sell at the peak, or wait and see.
In crypto trading, the worst thing is to be delayed by information; understanding the relationship between inflation data and the crypto market allows one to maintain composure amidst various data shocks. Follow me, and together we can navigate the waves of ups and downs in the crypto market to find the right direction and avoid capsizing!
