Crypto Market Sees High-Level Consolidation Amid US Inflation Volatility

The cryptocurrency market has been experiencing intense volatility in recent days due to US inflation data and Federal Reserve policy expectations. After the Consumer Price Index (CPI) data was released, market disagreements between bulls and bears intensified, leading to increased short-term shakeout movements.

The CPI data repeatedly impacted US Treasury yields and the US dollar trend, causing a violent reaction in the crypto market. Major players took advantage of this data window to shake out retail investors, but the overall mid- to long-term bullish structure remained intact.

Last Friday's price action was characterized by sharp dips followed by V-shaped reversals and rallies, with an inverted V pattern forming later at night, a textbook deep shakeout. Throughout last week, a trading strategy focused on longs with shorts as a supplement successfully captured profits in both directions.