📉 US Inflation Data: A "Cold Shower" for the Crypto Market At dawn on May 13th (Beijing Time), the unexpectedly high US CPI data released overnight poured cold water on global financial markets, instantly cooling down the recently warming crypto market. Key Data: Stubborn Inflation, Rate Cut Dreams Dashed - CPI Skyrockets: The US unadjusted CPI for April rose by 3.8% year-on-year, hitting a new high. Core CPI also surged by 2.8%. This indicates that domestic inflation pressure remains massive and hasn't cooled down as expected. - Rate Cut Hopes Shattered: The strong data directly crushed market fantasies about a near-term Fed rate cut. Currently, the probability of keeping interest rates unchanged in June has soared to 97.6%, making the hope for cuts within the year increasingly slim. Market Impact: Tightening Liquidity, Pressure on Risk Assets For cryptocurrencies led by Bitcoin, this report is a direct bearish blow: - Price Correction: As high-risk assets, cryptos are highly sensitive to liquidity. High interest rates mean rising capital costs; investors prefer holding USD or Treasuries, leading to capital outflows from the crypto market. Bitcoin prices dipped noticeably after the release, with technical patterns breaking down. - Sentiment Cools: Market sentiment, previously boosted by regulatory tailwinds (like the "CLARITY Act"), cooled rapidly. The Fear & Greed Index dropped, suggesting the market will likely enter a period of volatility and adjustment in the short term. Summary Simply put, last night's data shows the US economy is still "overheated," forcing the Fed to maintain high rates. This removes the key momentum supporting crypto gains—liquidity expectations—leaving the market facing short-term valuation resets and downward pressure.