The freshly released U.S. April CPI data was served straight to the market with a splash of cold water. Core CPI rose 2.8% year-over-year (expected 2.7%, previous 2.6%) and 0.4% month-over-month (expected 0.3%). Both beat expectations, and the month-over-month increase reached the highest level since January this year, showing that inflation stickiness is now fully in effect.

In plain terms, the effects of rising energy prices have already been transmitted into areas such as services and insurance. The “second-round transmission” of inflation is confirmed. The rationale for the Federal Reserve to cut rates has been directly cut off. Earlier, the market was still hoping for 2-3 rate cuts this year, but now it’s been sent back to square one. Rate-cut expectations have been significantly pushed back, and even some institutions have called for the view that “there will be no rate cuts this year.” The U.S. dollar and U.S. Treasury bonds strengthened on the spot, putting immediate pressure on risk assets.

For the crypto market, the prior rebound in “big pie” was propped up entirely by rate-cut expectations. Now that those expectations are gone, funds naturally don’t dare to rush in. The weekend’s choppy trading has already reflected a wait-and-see mood. In the short term, the market will most likely remain range-bound and biased downward. Don’t blindly try to catch the bottom—wait for the market to digest the data, then see what the Federal Reserve officials say. For now, stability is the top priority. #TROLL两日涨超160% $BTC $ETH