Tonight at 20:30, the highly anticipated CPI data will be released. In the current fragile market sentiment, the impact of this data should not be underestimated.

If the actual inflation level is lower than expected, the market may believe that the Federal Reserve will accelerate the pace of rate cuts. In this case, the U.S. stock market and the cryptocurrency market may see a significant rise, and investor sentiment is also expected to improve.

On the contrary, if the inflation data is higher than expected, the market's expectations for interest rate cuts may cool down, and short sellers may take the opportunity to exert pressure, leading to a rapid decline in asset prices.

Even if the data fully meets expectations, market reactions are difficult to predict. Typically, fluctuations are not too large, but given the current sensitive market environment, any result could trigger unexpected trends.

It is worth noting that in the minutes following data releases, the market often experiences significant volatility. During this time, false breakouts or false pullbacks may occur, which poses a greater risk for short-term traders. It is advisable for investors to carefully manage their positions to avoid losses in an emotionally driven market.

Regardless of the final outcome, the release of CPI data could become an important turning point for the market. Investors should closely monitor market reactions after the data is released and adjust their investment strategies in a timely manner based on the actual situation.