🎯 Why did the CPI report come out extremely well, but the market from stocks, Bitcoin to crypto still experienced a "strong drop"?
There are 2 extremely important reasons behind this crash!
➡ Reason 1: The FED is "playing tricks" with the market!
The CPI released last night was too good — both the overall CPI and Core CPI dropped sharply, exceeding expectations.
→ This should have made the market excited as there were hopes that the FED would soon lower interest rates.
But no!
Right after that, a series of FED chairs came out to speak and almost... completely ignored this positive CPI data.
They emphasized that:
"The biggest concern right now is the risk of inflation escalating from the trade and geopolitical war."
Even Trump had to speak out criticizing that the FED is deliberately "playing politics" — adjusting statements and policies not based on economic data but based on their own goals!
➡ Reason 2: China is still aggressively devaluing the Yuan
How is China doing this?
→ Flooding the market with U.S. bonds → cashing in USD → thereby pushing the USD/CNY exchange rate up → causing the Yuan to depreciate.
This puts enormous pressure on the global financial market — especially on emerging markets and crypto.
In summary:
Beautiful economic data doesn't necessarily mean the market will rise.
Because the big game right now is in the hands of policymakers — and they are "playing tricks"!
Be careful of "bull traps" during this period!
