The cryptocurrency market is bracing for a critical day as the US inflation data release tomorrow could significantly impact risk markets. Bitcoin currently trades at $61,500, with altcoins facing a gloomy outlook. Investors are exercising caution, reflected in volume data, as macroeconomic uncertainty threatens to suppress cryptocurrencies for an extended period.

Tomorrow's US April inflation data release, scheduled before the US stock market opens, will be a crucial moment. The previous quarter's dismal data and Fed members' warnings against pessimism have heightened concerns. The recent US Core Producer Inflation data came in at 0.5% monthly, exceeding expectations and fueling worries about a potential bad surprise in the CPI data. If the inflation data surpasses the 3.4% expectation, it could lead to sharp declines.

Renowned economist Raoul Pal predicts a rise in crypto markets based on global liquidity cycles. He believes the crypto market will soon experience an upswing, citing the ongoing liquidity cycle since 2008. If his prediction materializes, we may see assets like Solana and Ethereum outperform Bitcoin, and meme coins reach unprecedented prices again.

However, with the possibility of the first rate cut in September weakening, the realism of this prediction remains uncertain. Nonetheless, the cryptocurrency market is known for its unpredictability.