Global financial markets focus on U.S. CPI data, and Bitcoin's short-term trend is dominated by inflation expectations.
Global financial markets are closely watching the upcoming U.S. Consumer Price Index (CPI) data today. August inflation data, one of the most influential macroeconomic indicators of the week, is critical to Bitcoin and overall risk appetite.
For Bitcoin, the core focus is not only whether the actual data is higher or lower than market expectations, but also how the data changes the market's expectations for the Federal Reserve's future interest rate policy. If inflation data, especially core CPI, is lower than expected, the market may price the Fed to take a more cautious attitude on raising interest rates. Under this scenario, downward pressure on U.S. bond yields and the US dollar may boost demand for risky assets, including Bitcoin.
Conversely, if the inflation data is stronger than expected, it will increase the pressure on the Fed to maintain tightening monetary policy and increase the possibility of raising interest rates during the September 15 - 16 meeting. In this case, the rise in U.S. dollar and U.S. bond yields may create short-term selling pressure on Bitcoin.
Currently, the probability that the market has priced a September interest rate hike is 67.1%. U.S. inflation data for August, which the Federal Reserve will closely monitor when making interest rate decisions, has now been released.
Details of US inflation data
Consumer price index (CPI) annualized: Published value 3.4%-Expected value 3.4%-Previous value 3.4%
Consumer price index (CPI) monthly rate: Published value 0.4%-Expected value 0.4%-Previous value 0.1%
Core Consumer Price Index (Core CPI) annualized: Published value 2.4%-Expected value 2.4%-Previous value 2.5%
Core Consumer Price Index (Core CPI) Monthly rate: Published value 0.3%-Expected value 0.2%-Previous value 0.2%
Consumer Price Index is a key variable to measure U.S. consumer purchasing trends and changes in inflation.
*Bitcoin's preliminary reaction to CPI data
Please note: The above does not constitute investment advice.

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