The China-US tariff agreement alleviates supply chain pressures, weakening the negative logic of 'high tariffs → high inflation → delayed interest rate cuts', leading to a repricing of funds towards the anti-inflation attributes of crypto assets.

Previously, the market worried that a higher-than-expected CPI could trigger a liquidation of $3.4 billion in long positions below $100,000, but favorable data instead forced short positions to close, creating a short squeeze.

The inflow of funds into the Ethereum ecosystem has accelerated (with $1.2 billion over the past 7 days), coupled with news of the Trump family increasing their ETH holdings, driving funds towards altcoins and forming a pattern of widespread market increases.

Although the CPI is favorable, the market greed index has reached 70, and Bitcoin's short-term gains have been too rapid (an 8.9% increase in one week), caution is needed against a potential pullback triggered by profit-taking.

If the 'local currency settlement pilot' in the China-US tariff agreement weakens the dollar's position, it could be a long-term positive for BTC as an alternative settlement tool, but in the short term, funds may flow back to traditional markets.

The retail sales data from the US on May 15 and Coinbase's formal inclusion in the S&P 500 index on May 19 could become catalysts for a new round of volatility.