The July PPI data in the U.S. for $BTC reached a three-year high in month-on-month growth, leading to a tightening of market expectations for the Federal Reserve's interest rate cuts, with the expectation of a 50 basis point cut being directly eliminated and maintaining the expectation of a 25 basis point cut.

After the spot premium returned to positive and started to decline, a large number of long positions in futures were liquidated, with a small number of short positions entering the market. The significant liquidation of long positions in the entire market and the recent shipment of spot directly led to a correction of about 5%.

First, pay attention to the area around 116500, as this position is a liquidation point and also the gap for CME Bitcoin.