Although the US stock market and $BTC both fell over the weekend, the homework wasn't difficult to write. As mentioned in the past two days, market sentiment can be driven by financial reports, but liquidity will not improve because of them. Particularly, the trend of institutional funds and overall market sell-offs, which has been discussed for four consecutive days, supports the current market situation. The core narrative remains insufficient liquidity, and the lack of funds requires monetary policy to resolve this challenge.

Today's PPI data is also not good. Although it is lower than the previous value, it is higher than expected. The month-on-month rate is higher than both the previous value and expectation. The annual and monthly core PPI are also both higher than the previous value and expectation. Inflation has been declining for two consecutive months, but this month might face some challenges, which is a concern for investors. An increase in PPI is likely to lead to an increase in PCE as well, and this is not good news for US monetary policy.

However, from a long-term perspective, I am not very worried. On one hand, the US tariffs that suppress the Federal Reserve from cutting interest rates have already yielded results; with the threat of losing tariffs, the probability of inflation decreasing is greater. On the other hand, as June approaches, the Federal Reserve Chairman is a very important trump card for Trump. There is indeed an opportunity to continue easing in the second half of 2026 to create momentum for the midterm elections.

Looking back at Bitcoin's data, it is still a day with both trading volume and turnover rate declining, so there's nothing much to say. Investors' buying sentiment has detached from the financial reports; what rose has fallen back to where it started, reflecting insufficient liquidity. Every increase may be an exit of liquidity by institutions and hedge funds.

Today is the last working day. The poor PPI data will carry into the weekend, and the weekend's liquidity is a mess, so I hope nothing unexpected happens; I don't expect anything else. However, if something unexpected does happen, it could also be a good opportunity to buy at the bottom.

@bitget VIP, lower fees, better benefits

免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。