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Ahead of the upcoming Consumer Price Index (CPI) data release, the market has maintained a robust risk-averse sentiment. Analysts predict that this month's CPI may range between 2.7% and 2.8%. If it comes in below 2.7%, it could have a positive impact on the market. Notably, the month-on-month data may be lower than the previous value, indicating limited inflation transmission pressure. However, the core CPI may remain unchanged or slightly rise, reflecting that inflation is still on the rise and has not fully captured the impact of tariffs.
As the impact of tariffs is gradually being digested by the market, investors' focus has shifted to the policy struggle between Trump's camp and the conservative faction of the Federal Reserve. Regardless of the CPI data, market expectations for a rate cut in September remain high.
In the cryptocurrency space, Bitcoin (BTC) saw an increase in trading activity earlier this week, indicating that short-term funds are actively participating. Despite the price returning to the $120,000 mark, early investors did not sell off in large quantities, highlighting their confidence in long-term holding. Currently, the chip structure of Bitcoin's two main support levels remains solid, while the seventh support zone is forming. The firm stance of long-term holders provides strong support for Bitcoin's price.
Overall, the market is closely watching the release of CPI data, while the cryptocurrency market is also showing positive resilience. Investors need to continuously pay attention to policy changes and market sentiment trends to make informed investment decisions.