The annual rate of the US unadjusted CPI in September was 2.4%, which was expected to be 2.3% and the previous value was 2.50%; the annual rate of the unadjusted core CPI in September was 3.3%, which was expected to be 3.2% and the previous value was 3.20%19.

Short-term fluctuations:

The market's expectations for inflation and the Fed's monetary policy will be adjusted, and this uncertainty often leads to short-term fluctuations in the cryptocurrency market. For example, when some CPI data exceed or fall short of expectations, mainstream cryptocurrencies such as Bitcoin may experience large price fluctuations in a short period of time. Although the annual rate of the US CPI in September has declined, it is still higher than expected. This slightly higher-than-expected situation may cause short-term fluctuations in the market, and investors will re-evaluate and speculate on the future direction of monetary policy, resulting in short-term flow of funds and price changes in the cryptocurrency market. Changes in trading activity: The uncertainty brought about by this data will cause some investors to choose to trade in the short term to make profits or avoid risks, thereby increasing the trading activity in the cryptocurrency market. However, for some investors with low risk appetite, they may choose to wait and see for the time being, which will also affect the trading scale of the cryptocurrency market to a certain extent.

Long-term trend: Impact on Fed policy expectations: CPI data is an important reference for the Fed to formulate monetary policy. Higher CPI data may mean that inflationary pressure still exists, and the Fed may continue to maintain a relatively tight monetary policy, which is not good news for the cryptocurrency circle. Because tight monetary policy will lead to reduced liquidity in the market, higher capital costs, and lower risk appetite of investors, which will have a certain inhibitory effect on the long-term development of the cryptocurrency circle. On the contrary, if CPI data continues to decline, indicating that inflation is effectively controlled, the Fed may adopt a looser monetary policy, which will bring more funds and a better development environment to the cryptocurrency market. Impact on market confidence: In the long run, a stable inflation environment is crucial to the healthy development of the economy. If CPI data fluctuates greatly, or the inflation problem is not solved for a long time, it will affect investors' confidence in the entire economic market, including confidence in the cryptocurrency circle, resulting in reduced capital inflows and restricted development of the cryptocurrency circle.

#CPI&PPI来袭，美国通胀升还降？