All eyes are on Wednesday's upcoming Consumer Price Index (CPI) report, which comes just ahead of the Fed's next big move. With a rate cut on the horizon, this data could be key to shaping the Fed's decisions and moving markets. Here's why it matters:

If inflation is lower than expected, the Fed could cut rates faster or deeper than planned. Conversely, if inflation remains high, the Fed could take a more cautious, longer-term approach.

Key points to note:

Consumer prices are expected to rise 0.2% from July.

Core CPI (excluding food and energy) is also expected to edge up 0.2%.

CPI is expected to fall to 2.6% year-on-year, while core CPI remained unchanged at 3.2%.

My Views and Cryptocurrency's Next Move

The market is pricing in a 25bp rate cut in September. No major surprises are expected, and if CPI data comes in line with forecasts, the Fed will likely maintain the 25bps.

But here's the twist: with this already factored into the current market price, I predict crypto could actually decline in the short term following this outcome. In other words, "buy the rumor, sell the news".

However, if CPI overshoots and rises significantly, we could see increased optimism for a more aggressive 50bps rate cut, which could boost crypto.

Stay alert—it all depends on how the numbers play out!