The US December CPI data just came out, and the market's reaction can be best described with one word—"conflicted."

Let's look at the numbers first. The overall CPI increased by 2.9% year-on-year, which is higher than expected, mainly driven by energy prices. But what’s truly worth noting is the core CPI, which rose by 3.2% year-on-year, showing a mild slowdown compared to the previous figure. This is quite interesting.

On the surface, inflationary pressures are still present, with energy factors pushing the overall data higher. But deeper down, the Federal Reserve is actually seeing signs of easing in core inflation. What does this mean? In the short term, the Fed is unlikely to rush into rate cuts. Policy may continue to stay on hold, giving the market time to digest.

For the crypto market, this report breaks the narrative of a single-line rate cut expectation. Over the past few months, everyone has been expecting the Fed to cut rates quickly, but now the data says: not so fast. This slight adjustment in expectations will likely persist over the coming months.

Honestly, this CPI report is like a puzzle for the market—there's inflation pressure on one side and signs of relief on the other. How to interpret it? Asset prices may still fluctuate in the short term depending on how investors digest this "contradiction."

What do you think about this data? How will the market move next? Feel free to share your thoughts.