Don't just look at the ups and downs of tonight's CPI data! These 3 details may determine the trend of altcoins for the next month!
Tonight's CPI data will be influenced by the last major non-farm payroll report, and the market is sensitive before the data is released, with everyone wanting to hedge. Altcoins themselves are highly volatile and carry high risks, making the demand for hedging more pronounced. The last major non-farm payroll's flash crash combined with the uncertainty of the CPI data has led to short-term purchases of mainstream coins for risk aversion, leaving altcoins neglected.
For altcoins to take off, we need to wait for the main upward wave of Bitcoin and Ethereum to be established, the upward momentum to slow down, and prices to consolidate at high levels. Only then will fear decrease, and speculative funds will be willing to enter the market. Broadly speaking, as long as tonight's CPI data is not particularly outrageous, it will be considered a positive, addressing some market concerns and allowing the market to calm down.
If the data is gentle enough to dispel recession expectations and provide clear guidance for rate cuts in September, the market could rally again. Currently, geopolitical risks, U.S. economic indicators, and Trump's group control are all improving and stabilizing. If the previous rise was due to rate cuts combined with expectations of Trump 2.0, then subsequent significant rises will require actual rate cuts and Trump's control over monetary policy, which is the tangible version of the Trump 2.0 narrative.
A large-scale altcoin market will have to wait for ETF funds to shift from a bull market to a fundamental bull market, while small-scale altcoins will rise as Bitcoin and Ethereum stabilize and volatility decreases, allowing overflow funds and sentiment to drive the market. This moment may coincide with tonight's data release or the September CPI and September FOMC outcomes, reducing macro uncertainty and allowing the market to take on risk positions. Let's wait and see.
