As the new week begins, the financial markets are facing two key events that will directly impact whether the cryptocurrency market takes a brief respite or continues its downtrend.

Firstly, the highly anticipated US September CPI data will be released this Friday. Although the release has been delayed, its impact may be more significant. Mainstream institutions predict a month-on-month increase of 0.4% and a year-on-year increase of 3.1%. Behind what seems like unremarkable numbers lies extreme market divergence due to the delayed release. The inability to obtain official inflation data for two weeks has led to a market filled with various speculations and alternative indicators, with sentiment torn into two extremes.

Once the CPI data is released, the entire market, especially the expectations for future interest rate trends, may experience significant fluctuations. Whether in the stock market, bond market, or encryption currency market, noticeable volatility may occur.

Secondly, the US Treasury auctions on Wednesday and Thursday this week should not be overlooked. Especially the 5-year Treasury Inflation-Protected Securities (TIPS) auction on Thursday, which has potential influence that should not be underestimated. This auction will issue $26 billion in TIPS, effectively raising the ceiling on real interest rates. If this TIPS auction results in high interest rates, it could have a significant impact on the encryption market.

The reason is that the valuation of many cryptocurrencies mainly depends on market liquidity and expectations of future prospects. Once the risk-free actual return rate rises, institutional investors with stable cash flows may choose to withdraw, unwilling to take risks on an uncertain future. In this case, what we may see is not just a market correction, but an overall loss of investor confidence and market liquidity.

Observing the current market trends, it seems that these concerns have already been reflected. The previously reached high point of $126,200 has been confirmed as an important resistance level, and market participants are closely monitoring the subsequent developments. During this period of uncertainty, investors need to remain vigilant and pay close attention to the outcomes of these key events and their potential impact on the market.