What is PPI? It is the most sensitive inflation thermometer on the production side. This time the reading "exploded", meaning that corporate costs are "running a high fever". If this high fever does not subside, the consequences are very direct:

Inflation expectations rise again: with higher costs for businesses, ultimately the burden falls on the consumers, how can consumer prices (CPI) not be under pressure? With consumers' wallets shrinking, the Federal Reserve will be even more cautious in easing off the gas on this "Long March" against inflation.
"September interest rate cut is shrouded in heavy shadows": There were still optimistic predictions that the Federal Reserve might make a significant cut of 50 basis points. Now? With the PPI’s sudden impact, mainstream institutions have lowered their expectations—if a 25 basis point cut happens in September, it would be considered a concession to the market. On the prediction market Polymarket, the probability of an interest rate cut in September has dropped sharply from 85% last week to around 75%."
The market votes with its feet: Once the PPI was released, US stock futures fell in response, the dollar strengthened, and US Treasury yields rose - a typical "risk asset retreat" scenario. The expectation of interest rate cuts was doused by the PPI with a bucket of cold water.

Is there a "script" behind the data?

The BLS, which publishes the PPI, is currently in the spotlight. Not long ago, its head was replaced by Trump, and the new leader is believed to have a policy orientation more in line with the former president. (Background event: Trump's replacement of the head of the statistical bureau sparked discussions). This personnel change left many feeling uneasy: "Will this key data be 'polished'?" However, the PPI is somewhat different from non-farm data. Its collection method is more "hardcore"—companies quote prices directly, and industry price lists are reported in black and white, making the statistical process relatively "rigid". It’s extremely difficult to artificially "adjust" the data, and any changes must be clearly stated in the statistical explanations. Therefore, the "spiciness" of this PPI is likely to be genuine, not the fake kind that has been "filtered". Even with a change in leadership, the professional processes and institutional guarantees of the statistical team remain, and the data is essentially what it is. This "high fever" still has a degree of credibility.

Is the "macroeconomic dependency syndrome" in the cryptocurrency circle a blessing or a curse?

When the "inflation signal bomb" of the PPI goes off, the crypto circle instantly "drops to the ground to find cover"—this is by no means a coincidence. It once again sounds the alarm: the cryptocurrency market is suffering from a deep "macroeconomic dependence syndrome." A subtle hint from the Federal Reserve, an unexpected fluctuation in a key piece of data, may have a far greater impact than a significant upgrade or application explosion on a particular chain.
In this era of "data as market trends," paying close attention to the economic calendar may be more important than watching the order book. Macroeconomic data is no longer background noise in the crypto space, but rather a conductor that determines the heartbeat rhythm of the market.

There is still more than a month until the expected rate cut window at the end of September. Given the historical "constitution" of the crypto market, it would be completely "normal" for there to be some unexpected fluctuations during this period. Being prepared to cope with volatility is key.