When the data sounds, gold is worth a fortune; when inflation erupts, the crypto market is scared to death!” — The U.S. PPI 'inflation bomb' has completely stunned the market!

News: PPI data far exceeded expectations, the crypto market is in turmoil!
Tonight's data shows that the U.S. July PPI year-on-year soared to 3.3%, with a month-on-month surge of 0.9%, marking the largest increase since June 2022! This data directly shatters the market's fantasy of cooling inflation, and the probability of a Fed rate cut in September plummeted instantly, causing ETH to crash from $4721 to $4496, while Bitcoin also briefly dipped below the $120,000 mark.

Why is PPI scarier than CPI?
PPI is an inflation 'leading indicator'. Soaring business costs will eventually be passed on to consumers, indicating that CPI may rebound again! The Federal Reserve is now in a dilemma: if it insists on lowering interest rates, inflation may spiral out of control; if it delays rate cuts, the risk of economic recession intensifies. The market's panic index has soared, and funds are fleeing risk assets in a frenzy, with cryptocurrencies being the first to bear the brunt.

How will the market move forward? Three possibilities:

Worst-case scenario: If the upcoming PCE data also exceeds expectations, ETH may continue to fall, even testing the $4300 support.

Neutral scenario: After the bearish news is digested, it will move sideways, waiting for the September Fed meeting or an ETH upgrade narrative to save the situation.

Best-case scenario: If economic data weakens and the Fed turns dovish, ETH may rebound quickly, even challenging the $5000 mark.

Long brother's viewpoint:

Short-term: Keep a close eye on the retail sales data for August 15th. If it falls short of expectations, decisively bottom-fish ETH levered long positions.

Long-term: Remember Tom Lee's famous saying — 'Buying ETH is the most important trade of the next decade!' A pullback is a dollar-cost averaging opportunity, with a target of $6000 by 2025.

The market always oscillates between fear and greed, but the true winners are always those who are 'greedy when others are fearful'. Now, will you choose to follow the emotions or remain calm and strategize?


Still the same saying, when confused and helpless without knowing what to do, follow me, and I will guide you to accurately bottom-fish in the next wave of market!