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At 20:30 tonight, the United States will announce the July retail sales month-on-month data, which may have a profound impact on the encryption market. The market generally expects a growth of 0.5%, but internal data suggests it could be as high as 0.8%. This data is not only related to the trends of the US dollar and US stocks but could also become a key trigger point for the encryption market.
After the data is released, the cryptocurrency market may face various situations:
1. If the data exceeds expectations: the US dollar may strengthen in the short term, and Bitcoin may face downward pressure. However, in the long run, strong consumption data may increase the likelihood of an economic soft landing, which in turn could attract more institutional funds into the encryption market.
2. If the data is below expectations: The market may strengthen its expectations for a rate cut by the Federal Reserve in September, leading to a weaker dollar. In this case, major encryption currencies like Bitcoin and Ethereum may experience significant increases.
3. If the data meets expectations: the market reaction may be relatively stable. However, investors still need to closely monitor core retail data, especially the consumption data excluding automobiles and gasoline. If this data remains strong, it may provide support for the price of Bitcoin.
Regardless of the data, the long-term outlook for the cryptocurrency market remains optimistic. More and more institutions and retail giants are entering this field, and even some fast food restaurants and gas stations have begun accepting Bitcoin payments, showing that encryption is gradually integrating into the mainstream economic system.
However, the market may experience severe fluctuations in the short term. After the data is released, the price of Bitcoin may see significant ups and downs, and short-term traders need to be particularly cautious to avoid potential liquidation risks. For long-term investors, the current market dynamics may provide an opportunity to build positions or increase holdings.
Overall, the release of tonight's U.S. retail data is undoubtedly an important moment for the cryptocurrency market. Regardless of the outcome, it will provide valuable information to market participants, helping them to formulate more informed investment strategies.