The U.S. government departments have been shut down for a while, and recently they finally announced the CPI data to summarize the situation for everyone.

The latest US CPI data released on October 24 was like throwing a ticking time bomb into the market. The data was slightly lower than expected, but it still shows that inflationary pressures remain strong—this means that the Federal Reserve is unlikely to immediately ease interest rates in the short term. The market's original bet on the "year-end dovish" dream has once again been doused with cold water by reality.

After the announcement, U.S. stocks initially surged but soon retreated as investors began to realize the "subtlety" of the report. The CPI dropped slightly, but core inflation remains stubborn, which essentially tells the market: don't be too optimistic, the economy won't cool down that quickly. As a result, bond yields rebounded slightly, the dollar index rose, and risk aversion sentiment increased again.

The cryptocurrency market is also being driven by this atmosphere. Bitcoin and Ethereum saw a slight rise after the data was released, but were quickly pushed back by macro pressures. Investors' expectations of a renewed liquidity contraction make it difficult for risk assets to sustain a rebound. Some capital has exited the market in the short term, waiting for clearer signals of interest rate cuts.

Overall, this CPI is neither bad news nor good news. It makes the market more certain that "interest rate cuts will have to wait" and instantly cools speculative sentiment.

In simple terms, short-term fluctuations are intensifying while long-term trends remain unchanged; this is the current reality—seemingly calm, yet turbulent beneath the surface.

For personal analysis only, no investment advice.