The latest US CPI inflation data has finally been released. How should we interpret this data? Is it a positive or negative signal for the crypto market?

First, the conclusion: this CPI report generally meets expectations, so the market impact is limited. However, a key detail is that the core CPI came in below expectations, which is a positive signal for the market.

Let's break it down. The logic of how CPI data influences the crypto market is quite straightforward:

**CPI below expectations** = Easing inflation pressures = Central banks more likely to cut interest rates = Liquidity becomes more relaxed = Positive for risk assets (including cryptocurrencies)

**CPI above expectations** = Persistent inflation = Delay in rate cut expectations = Negative for the crypto market

**CPI in line with expectations** = Market has already priced in the data = Limited impact

This time, the better-than-expected core CPI indicates that inflation is indeed moderating. For crypto traders, this suggests the possibility of an interest rate cut window opening and improved liquidity conditions. Of course, the actual market trend will depend on more factors, but from the data perspective, the overall sentiment is leaning positive.