Recently, the focus of the financial markets has centered on an important event: the falsification of non-farm employment data. This event could have a significant impact on the Fed's future monetary policy, and the market even predicts that the possibility of a rate cut in September has exceeded 90%.

However, we should not forget that whether it is inflation or deflation, the Fed has corresponding measures to respond. Here, we mainly focus on the issue of inflation.

The Fed has always set a 2% inflation target for the CPI (Consumer Price Index). The last two CPI data have exceeded 2% and are showing an upward trend, which also explains why the Fed chose to maintain the status quo in the last meeting minutes. In addition, the trade dispute has not been fully resolved, and negotiations between the world's largest demand and supply countries are still ongoing, which further adds to the uncertainty of the economic outlook.

Next Tuesday (the 12th), new CPI data will be released. Investors should focus not on whether the data itself is good or bad, but on the magnitude of the change compared to the previous value of 2.7%. Combined with the monetary policy statement from the Fed that will be released at the end of the month, we will be able to better assess whether a rate cut will be realized in September.

The CPI data is so important because it reflects the current overall economic situation, which in turn affects the Fed's monetary policy decisions. These decisions directly impact the investment market. It is worth noting that the cryptocurrency market, as a high-risk investment field, often reacts more violently to these changes. For example, a few years ago when the CPI was close to 9%, the cryptocurrency market experienced a significant drop.

In this context, investors need to closely monitor the upcoming CPI data and its potential impact in order to better predict and respond to the potential fluctuations in the cryptocurrency market.