CPI data is favorable
Currently, Bitcoin is fluctuating around 110,000
If it can't break through, a significant drop may occur; if it breaks through, a substantial rise may begin.
Be cautious of a double explosion of long and short positions, and maintain good defense.
However, this data is merely a "minor interlude" that temporarily alleviates market volatility; the most crucial point is that the trade friction between China and the United States has temporarily eased, which is the main storyline.
In May, both the US CPI and core CPI were lower than expected. Although a 10% tariff has caused some products to increase in price,
the cooling of service sector consumption, which makes up a large portion of the CPI, combined with falling energy prices, has "neutralized" the inflationary pressure brought by tariffs.
Initially, everyone expected the impact of the April tariff war to be reflected in the May data, anticipating an upward trend in the CPI; instead, it declined, which is considered a positive signal for the market.
Today's CPI shows that the impact of tariffs on inflation is limited. If tomorrow's PPI and next month's inflation data can also verify this, the pressure of inflation on US Treasury bonds will almost disappear, and the Federal Reserve will have less burden in lowering interest rates.
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