An Investment Guide to the US CPI and Bitcoin that Ordinary People Can Understand

I. How to Interpret US CPI Data?

(1) Annual Inflation Rate

- Below 2.6%: Prices are rising slowly, the Federal Reserve may lower interest rates. The dollar is losing value, making Bitcoin, a safe-haven asset, even more sought after.

- Above 2.8%: Prices are rising sharply, the Federal Reserve may raise interest rates. After the rate hike, keeping money in the bank becomes more profitable, causing Bitcoin prices to easily drop.

(2) Monthly Price Changes

- Within 0.1%: This month, prices have basically not increased, and the market feels the economy is doing well, so Bitcoin prices may rise soon.

- Above 0.3%: Prices are rising too quickly, and the market may believe the Federal Reserve will not lower interest rates, making Bitcoin prices more susceptible to pressure.

(3) Core Price Indicators

- Below 3.0%: Excluding volatile elements like oil and vegetable prices, prices are still falling, leading to high investment enthusiasm, and Bitcoin may break through its price peak.

- Above 3.1%: Prices cannot be contained, the Federal Reserve will maintain high interest rates, making it difficult for Bitcoin prices to rise.

(4) Job Market Situation

- Above 223,000: Many people are receiving unemployment benefits, indicating that jobs are hard to find. The market hopes the Federal Reserve will lower interest rates to stimulate the economy, making Bitcoin prices prone to increase.

- Below 219,000: Jobs are easy to find, so the Federal Reserve is not in a hurry to lower interest rates, making it difficult for Bitcoin prices to see significant improvement.

II. How to Operate Bitcoin?

(1) When Data is Positive

Assumption - On the Day: Prices may surge to $840 - $850, and if lucky, may rise to $870.

- In the Next 3 Days: If it stabilizes at $850, it may rise to $880 - $900.

(2) When Data is Negative

Assumption - On the Day: Prices may drop to $750 - $760.

- In the Next 3 Days: If it falls below $755, it may drop to $720 - $730.

(3) When Data is Normal

Prices will fluctuate between $780 - $840, it is recommended to wait and see, and only act once new market information arises.

Final Reminder: Market changes faster than turning pages! CPI is just one aspect; wars and policy changes can also affect prices. It's essential to set a stop-loss line when investing, don't be greedy, and preserving your capital is the most important.