Look at the current Bitcoin market, weak volatility, moving sideways for half a day. The upcoming CPI data has been secretly anticipated for a while.

Currently, Bitcoin is stuck around 61,000, with several moving averages pressing down, every rebound just getting crushed back down. It looks like the market lacks strength, but actually, funds are already hedging risk in advance and dare not enter the market to buy.

The market expects this CPI to hit 4.2%, even core inflation excluding oil to rise, indicating that inflation is not just driven by the Middle East war pushing up oil prices, but that prices across the entire market are sticky and cannot be lowered in the short term.

The connection between these two is very straightforward: if inflation exceeds expectations, the Federal Reserve can't cut interest rates, and may even tighten monetary policy to maintain high interest rates. Assets like Bitcoin, which rely on loose monetary policy expectations, naturally lose their upward momentum. The current downward trend in the market is just funds digesting this negative news in advance; everyone is afraid that the data release will cause another drop, so they can only follow the weakness.

If the data really explodes, this small decline now won't be enough; even if the data is slightly better, the stickiness of core inflation remains, and any rebound will only be fleeting. Don't expect a big trend; a cautious approach is still the safest. #Gate直通IPO认购SpaceX $BTC $ETH