Crypto Markets Prepare for Crucial CPI Report and Federal Reserve Meeting

The crypto market is bracing for the upcoming US CPI report and Federal Reserve meeting, two events that could define its next major move.

Traders are watching inflation data as it directly influences expectations around Federal Reserve interest-rate policy. If inflation remains high, markets may reduce expectations for rate cuts, strengthening the US dollar and increasing pressure on risk assets like crypto.

The market is already deeply corrected, with leverage largely flushed out and sentiment remaining weak after billions in liquidations. This leaves the market vulnerable to sharp moves in either direction depending on macro signals.