The cryptocurrency market is closely watching the upcoming US Consumer Price Index (CPI) data release, as analysts anticipate it will significantly impact broader financial markets and sentiment within the crypto space. The US government shutdown and ongoing trade tensions between the US and China have already added volatility to the crypto market. Bitcoin’s price has retreated from its all-time high of $4,500 to a lower level around $103,000. This decline is mirrored across many altcoins like Ethereum, XRP, and others. The CPI data, crucial for the Federal Reserve to gauge inflation, will play a pivotal role in this analysis. 25 basis points (bps) of Fed rate cuts are widely anticipated next week. The market currently expects two additional rate cuts before the year’s end. However, a softer-than-expected CPI print could potentially spur a rally within the crypto market, while a hotter than expected report may further dampen investor confidence.