The CPI data tonight is a critical juncture, especially in the current context of highly sensitive market sentiment, where its impact on various assets cannot be ignored.

From the market reactions to different outcomes: if the CPI is lower than expected, it indicates a clear easing of inflationary pressures, which is likely to be interpreted by the market as a signal for the Federal Reserve to accelerate the rate-cutting process. Driven by this expectation, US stocks and crypto assets may experience a short-term surge, and the long-suppressed market sentiment will quickly warm up, with an increase in fund entry enthusiasm.

If the CPI is higher than expected, the situation may be completely opposite. The market will then worry that the Federal Reserve's rate-cutting process may be forced to delay, and there is even the possibility of renewed rate hike expectations, which will lead to a rise in risk aversion among short-term funds, causing various assets to experience a rapid decline. Short sellers may also take this opportunity to concentrate their energy, exacerbating market volatility.

If the CPI meets expectations, the market reaction may be relatively subdued. Since the data did not exceed previous expectations, it is difficult to form new trend guidance, and funds' focus will shift to the next catalytic event, such as the upcoming Federal Reserve meeting, PPI data, etc., waiting for clearer policy signals or economic data to set the direction.

It is important to note that regardless of what results the data ultimately presents, volatility is almost inevitable, and the direction may not be clearly evident at the first moment. Especially within just a few minutes after the data is released, both long and short sides are likely to leverage market sentiment to engage in a tug-of-war, which may lead to false breakouts and false pullbacks, creating a 'double kill' situation for both bulls and bears. For short-term traders, it is crucial to strictly control positions at this time to avoid being eliminated by the market due to blind operations in extreme phases of emotional volatility, and maintaining rational judgment is even more important. #CPI数据来袭 $ETH