The consumer price index data to be announced tonight, ( CPI ), is undoubtedly the focus of the market, especially in the current sensitive market atmosphere, and its impact should not be underestimated.

If the CPI is lower than expected, this will be seen as a signal of weakened inflationary pressures. Investors may consider this to provide the Federal Reserve with more justification for cutting interest rates, which could lead to a short-term rise in the US stock market and the cryptocurrency market, with overall market sentiment expected to improve rapidly.

On the contrary, if the CPI is higher than expected, the market may worry that the Federal Reserve will delay interest rate cuts. In this case, there may be significant volatility in the short term, and there could even be a rapid decline, with pessimists possibly taking the opportunity to make bearish statements.

If the CPI meets expectations, the market reaction may be relatively calm. At this time, investors' attention may turn to other potential market catalysts, such as the upcoming Federal Reserve meeting or economic data like the Producer Price Index ( PPI ).

Regardless, market fluctuations are inevitable, but the trend in the short term may not be clear, especially in the minutes following the release of data. For short-term traders, it is important to be cautious of potential false breakouts or pullbacks to avoid falling into a situation where both bulls and bears lose.

At this critical moment, investors should remain calm, closely monitor the market reaction after data releases, and make informed decisions based on their own investment strategies and risk tolerance. At the same time, attention should be paid to the long-term investment perspective, and one should not let short-term fluctuations overly influence their judgment.