Tonight's US CPI data is coming in hot; will it continue to be bearish or reverse to bullish?

CPI (inflation data) is the core basis for the Federal Reserve's monetary policy, which directly affects market liquidity and risk appetite, ultimately transmitting to the crypto space:
- High inflation (CPI above expectations) → Fed's rate cut expectations cool down or rate hike expectations rise → US dollar strengthens, Treasury yields rise → Funds flow out of high-risk crypto assets, market remains under pressure

- Inflation recedes (CPI below expectations) → Fed's rate cut expectations heat up → US dollar weakens, liquidity easing expectations increase → Risk assets see a rebound window

- Inflation in line with expectations → Market sentiment remains neutral, the crypto market maintains its current sideways pattern, with more focus on on-chain data and fund flows