晨光Crypto
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US July PPI exceeds expectations; my first reaction and operational thinking
Upon seeing 'PPI exceeding expectations' early in the morning, three things immediately crossed my mind:
Interest rate expectations become cautious → Probability of a stronger dollar rises → Crypto assets must accept volatility tests in the short term.
PPI represents production-side costs, often leading CPI. When production costs rise, the Fed is reluctant to easily loosen, and the market's imagination of 'quick interest rate cuts' will be dampened.
What does this mean for the cryptocurrency space?
Emotional aspect: Risk appetite will be slightly compressed, chasing up momentum will converge, and volatility will increase.
On the funding side: When the dollar and interest rates are rising, institutions are more willing to first reduce leverage and mitigate risks; in crypto, we should focus on defense first.
Interest rate expectations become cautious → Probability of a stronger dollar rises → Crypto assets must accept volatility tests in the short term.
PPI represents production-side costs, often leading CPI. When production costs rise, the Fed is reluctant to easily loosen, and the market's imagination of 'quick interest rate cuts' will be dampened.
What does this mean for the cryptocurrency space?
Emotional aspect: Risk appetite will be slightly compressed, chasing up momentum will converge, and volatility will increase.
On the funding side: When the dollar and interest rates are rising, institutions are more willing to first reduce leverage and mitigate risks; in crypto, we should focus on defense first.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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