📊 PPI Data Released: A "Respite" and Hidden Concerns for Crypto Following the market explosion caused by last night's CPI data, the Producer Price Index (PPI) released tonight has once again become the focus. The final data shows that the US PPI for April grew by 4.0% year-on-year. While higher than the previous 3.4%, it was significantly lower than the market expectation of 4.6%. This "better than worst-case scenario" data has allowed tense nerves to relax slightly, bringing a moment of respite to the crypto market—though the macro sword hanging overhead hasn't truly moved away. "Bearish Exhaustion" or "Boiling the Frog"? For the cryptocurrency market, tonight's PPI data is a double-edged sword, but in the short term, it leans towards a "neutral-to-bullish" interpretation: - Logic for Short-term Rebound: The market had braced itself for a "completely off-the-charts" number. Therefore, when the actual value (4.0%) came in much lower than the forecast (4.6%), it created a sense of "bearish exhaustion." This gap in expectations kept the US Dollar Index (DXY) oscillating at high levels rather than skyrocketing, providing a brief repair window for risk assets like Bitcoin. Some shorts chose to take profits, driving a technical rebound in coin prices. - Continuation of Deep Pressure: Despite not hitting "terrifying" expectations, the 4.0% year-on-year increase remains high and has expanded from the previous value. This indicates that inflationary pressure at the upstream production level is accumulating and is highly likely to传导 (transmit) to the consumer end (CPI) in the coming months. This means the Fed still has ample reason to maintain high interest rates, and the "Higher for Longer" rate environment remains the biggest enemy of the crypto market. Cost Transmission vs. Liquidity Game As a leading indicator for CPI, rising PPI means increased production costs for businesses. - Squeeze on the Real Economy: Rising energy and raw material prices (such as oil-related factors) will push up operating costs across society.