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This afternoon, the US December CPI data will be released, and the market is waiting for this moment. The expected year-over-year increase is 2.7%, slightly higher than November's 2.6%. It seems like a small fluctuation, but for cryptocurrency traders, this data could determine the next market trend.
Why is CPI so important? In simple terms, it relates to the Federal Reserve's future policy adjustments. The data directly influences whether monetary policy will be eased or tightened, which in turn affects the entire financial market, including cryptocurrencies like Bitcoin.
If the data meets expectations, the market may breathe a sigh of relief—indicating that inflation is still within controllable limits and the Fed may not need to raise interest rates significantly for now. Institutional traders will then readjust their positions, and major players in the crypto space will interpret the trend accordingly. Conversely, if the data exceeds expectations, a short-term correction is almost inevitable—this is a fundamental rule of macroeconomics.
Honestly, instead of focusing solely on a single data point, it's better to view these fluctuations over a longer timeframe. The crypto market has experienced many similar data shocks, but ultimately, it returns to the fundamentals. Proper risk management is the real priority.