Inflation tiger is out of the cage, the Fed's interest rate stick is about to be raised again!" - The recently released U.S. July PPI data far exceeded expectations, dropping a heavy bomb on the global market.

1. Data shocks the market: Inflation cannot be suppressed at all

The latest data from the U.S. Department of Labor shows:

  • July PPI annual rate 3.3% (expected 2.5%)

  • July PPI monthly rate 0.9% (expected only 0.2%)

What does this mean?

  1. Producer Price Index (PPI) is a leading indicator of CPI

  2. Data shows that corporate costs are still rising rapidly

  3. Ultimately, this will inevitably be passed on to consumer prices

2. The Federal Reserve's dilemma: Raise rates or not?

This data puts the Federal Reserve in a dilemma:

  • Continue to raise interest rates: May trigger economic recession

  • Pause interest rate hikes: Inflation may go out of control again

The key point is:

  • The probability of a rate hike in September has risen to 65%

  • Market expects rates to remain higher for longer

3. Impact on the crypto world: Short-term bearish, long-term bullish

1. Short-term impact:

  • Rising interest rate expectations will suppress risk assets

  • BTC may test the 29000 support level again

2. Long-term opportunities:

  • High inflation environment highlights Bitcoin's anti-inflation properties

  • Institutional allocation demand may increase

4. How should investors respond?

  1. Short-term players: Control positions and wait for clear signals from the Federal Reserve

  2. Long-term holders: Can gradually accumulate quality assets on dips

  3. All investors: Must pay attention to this week's CPI data

Important reminder:

"In the face of inflation data, all technical analysis must give way."

"Real opportunities are always reserved for those who are prepared."

I am Seagull, a veteran in the crypto world who speaks with data.

Follow my in-depth analysis to see through the essence of the market. For trading, please check the profile introduction.