#Gate广场五月交易分享 CPI data hits hard, the crypto market trend becomes completely clear!

On May 12th, Beijing time, the U.S. April key CPI inflation data was officially released, with all core indicators surpassing market expectations, directly breaking previous market expectations of rate cuts, and bringing a clear negative impact to global risk assets. The short-term trading logic of Bitcoin and Ethereum also becomes completely clear.
The CPI data released this time sends a very strong market signal: the U.S. April unadjusted CPI year-on-year rate was 3.8%, higher than the market expectation of 3.7%; the core CPI year-on-year rate reached 2.8%, also surpassing the expected 2.7%. Inflation data remains high, completely shattering the market’s illusion of rapid rate cuts by the Federal Reserve this year. The high-interest-rate policy cycle is forced to be extended, the U.S. dollar index and U.S. Treasury yields strengthen simultaneously, directly squeezing liquidity in the cryptocurrency market, and risk appetite cools rapidly. Bitcoin and Ethereum are now under short-term pressure.
After the data was released, the crypto market trend fully confirmed the forecast, showing a typical negative downward trend. Bitcoin briefly surged above 82,000 but quickly fell back, with bulls unable to mount a comeback, maintaining a generally weak and oscillating trend. Ethereum moved in tandem with the market, with a more obvious decline, very weak rebound strength, and short-term dominance by bears, once again confirming the core logic of data-driven market behavior.
Looking at the current market pattern, inflation persistence remains strong, the Federal Reserve’s monetary policy shift is still far off, and the crypto market lacks positive support. In the short term, the trend remains favoring bears.
In terms of operation, there’s no need to worry about contrarian bottom-fishing; firmly follow the core idea of shorting on rallies, waiting for the price to rebound to key resistance levels before deploying, which is the most prudent trading choice at present.
Bitcoin is recommended to short around 81,500–82,000 with a stop loss at 82,500, and take profit at 80,000–78,500. Ethereum is recommended to short around 2,340 with a stop loss at 2,370, and take profit at 2,250–2,200.
Personal advice, for reference only!