In July, the U.S. PPI rose 0.9% month-on-month, with core PPI also rising 0.9%, far exceeding expectations, raising concerns about inflation. The crypto market subsequently experienced a widespread decline, with BTC, ETH, SOL, and others dropping by 2%-6%, resulting in an evaporation of approximately 5% in total market value, and leveraged liquidations amounting to $326 million. High production costs may be transmitted to CPI, cooling expectations for a rate cut in September, with the market seeing a higher probability of a reduction to 25 basis points. Although Trump's replacement of the Labor Statistics Bureau director has raised speculations about data distortion, the PPI sampling is rigid, making the results credible. The event highlights the cryptocurrency market's high dependence on macro data: the Federal Reserve's policies and economic indicators have become the 'metronome' leading market trends, and investors need to closely monitor data rather than just relying on on-chain positives.
