#CPI Data Under Pressure, Greed Signals Emerge in the Cryptocurrency Market!#
CPI data hides concerns over interest rate hikes, cryptocurrency market sentiment is running high.
Tonight at 20:30, the U.S. May CPI data will be revealed, with the market widely expecting a year-over-year growth rate to rise to 2.4%. The tariff transmission effect and rebound in energy prices may push inflation higher. If the data exceeds expectations, the Federal Reserve's interest rate cut expectations will be further delayed, which may suppress high-risk assets. Currently, the price of Bitcoin is fluctuating near the $110,000 mark, with the middle band of the Bollinger Bands at $105,000 acting as key support, while the Fear and Greed Index has fallen from previous highs to 65 (in the greed zone), but market sentiment remains exuberant.
The Greed Index Warns of Risks, Market Sentiment and Technical Interplay Intensifies
Recently, the cryptocurrency market has exhibited characteristics of “high volatility + high leverage”: liquidation amounts in 24 hours reached $320 million, with BTC and ETH accounting for over half, while Meme coins like LABUBU saw daily market values soar over 125%, reflecting the restlessness of speculative funds. From a technical perspective, although Bitcoin has broken through the short-term downward trend, the KDJ indicator is oscillating in the overbought range and showing signs of divergence between volume and price. It is noteworthy that the valuation of compliant financial infrastructure companies like Circle has surged to $24 billion, indicating that institutional funds are accelerating their layout, but the siphoning effect of U.S. stock cryptocurrency concept stocks may divert market liquidity.
Strategic Recommendations: Beware of Data Impact, Focus on Bull-Bear Watershed
On the eve of the CPI data release, investors are advised to:
1. Control Positions: If Bitcoin falls below the key support of $105,000, it may trigger technical sell-offs, and risks of a correction should be guarded against;
2. Pay Attention to Policy Expectations: If CPI data reinforces the Federal Reserve's hawkish stance, consider moderately allocating stablecoins like USDT to hedge against volatility;
3. Seize Structural Opportunities: Ethereum's implied volatility has broken through 70%, and the options market is filled with bullish sentiment, so watch for opportunities to break the resistance level of $2800.
Stay alert when the market is greedy, and going with the trend is essential to navigate through cycles. Tonight's CPI data will be a key litmus test; are you ready?
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