PPI suddenly rebounds! Is the rate cut expectation collapsing again? The market is recalculating

Just now still dreaming of a rate cut, and the PPI data directly poured a cold water.
Producer Price Index exceeding expectations makes the market worry again: inflation is not dead.
So last night, the busiest people were not traders, but analysts "revising expectation models."
Because the market had been betting: there will be more rate cuts this year.
But once the PPI came out, the logic instantly changed.
If upstream costs rise again, the future CPI may continue to rebound. Then the Federal Reserve will find it difficult to cut rates quickly, and may even maintain high interest rates longer.
What does this mean for risk assets?
Short-term pressure.
Especially in the crypto market, which is driven by liquidity. Once rate cut expectations are delayed, many short-term funds will withdraw first to wait and see.
But interestingly, the US stock market did not fall sharply.
The reason is simple: the market is beginning to accept the "new normal of high interest rates."
In other words, Wall Street no longer fantasizes about a return to the "zero interest rate era," but accepts continuing to go long in a high-interest environment.
This is the biggest change in the current market.
In the past, rate hikes = collapse; now, rate hikes = volatility.
So the real danger may not be no rate cuts, but a sudden slowdown in the economy. If the economy can still hold up, funds will not completely leave risk markets.
And the crypto space now is more like an emotion amplifier.
One word from the Federal Reserve, and BTC can skyrocket; one data exceeding expectations, and the entire network can get liquidated.
In this environment, the most important skill is no longer predicting the market, but controlling positions. #美国4月PPI同比暴涨6%