The Consumer Price Index (CPI) data for the United States will be released tonight at 20:30, which is undoubtedly an important moment for the financial markets. Market participants are closely watching this data as it may have a significant impact on the encryption currency market.

Interestingly, Nick Timiraos, known as the "Fed's mouthpiece," previously predicted that the core CPI could rise to 3.1%, a figure well above market expectations, sparking widespread discussion.

The impact of CPI data on the cryptocurrency market can be divided into two scenarios:

First, if the CPI data exceeds expectations, it means that inflationary pressures remain significant. In this case, the Federal Reserve may be inclined to continue raising interest rates, which would lead to a flow of funds into low-risk assets. The cryptocurrency market may face pressure from capital outflows, and the prices of coins may experience a decline.

On the contrary, if the CPI data is lower than expected, it indicates that inflationary pressures have eased. In this case, the likelihood of the Federal Reserve further raising interest rates will decrease, and market liquidity may become more ample. Investors' risk appetite may increase, and the encryption market may attract more capital inflow, driving up coin prices.

Regardless of the outcome, the release of this CPI data could become a turning point for the cryptocurrency market. Investors should closely monitor the market reaction following the data release and adjust their investment strategies based on the actual situation. In this uncertain market environment, it is crucial to remain vigilant and flexible.