There will be a major market shake tonight, which is the CPI annual rate.

CPI measures how much prices in the US have increased (inflation data). It is extremely important because the Federal Reserve looks at it to decide whether to raise or cut interest rates, and interest rates directly affect high-risk assets like Bitcoin.
The CPI is higher than everyone guessed (inflation exceeds expectations):
This indicates that things are more expensive, and the Fed is likely to continue high interest rates or even raise them. When money becomes more expensive, people are less willing to take risks on assets like Bitcoin that don’t generate interest, and instead turn to bonds or savings. As a result: Bitcoin prices are prone to sharp declines! For example, during previous inflation surges, Bitcoin could drop over 20% in a few days, causing leveraged traders to get liquidated—super disastrous.
The CPI is lower than everyone guessed (inflation cools down):
This indicates that inflation is under control, and the Fed is likely to cut interest rates. When money is cheap and liquidity is abundant, people become more daring and flock to high-return assets like Bitcoin. As a result: Bitcoin is prone to rapid surges! In past years, when inflation eased, Bitcoin often doubled or more, and ETF funds flooded in.
In simple terms:
High CPI → Hawkish Fed → Bitcoin gets hit (drops)
Low CPI → Dovish Fed → Bitcoin gains (rises)
Of course, it’s not 100% accurate; market sentiment, halving events, Trump policies, and others also matter. But on the day of the announcement, volatility is super high, and many people are watching it to go all-in or run away. Currently, the expectation is 2.7%. If it really exceeds that, be cautious; if it’s lower, get ready to catch the falling knife!