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Mkurugenzii
Mkurugenzii
On June 10, the U.S. seasonally adjusted CPI at the end of May recorded an annual rate of 4.2%, in line with market expectations and hitting a new high since April 2023. Expected 4.20%, previous value 3.80%. Inflation data returned to above 4%, breaking the "tame" narrative of continuously below 3% since April 2025. From a high of 6.5% in early 2023 to a low of 2.3% in mid-2025, the market had expected that the interest rate hike cycle had completely turned. However, the data in July 2025 was flat at 2.7%, which has shown stickiness. This jump to 4.2% is the first "4-beginning" percentage reading since April 2023. The key signal is that while the readings were in line with market expectations, market expectations themselves have been revised significantly upwards within a month. This points to a lagging reaction of "expectations catching up with reality", which also means that the market has already digested this expectation in advance, and it also means that the stubbornness of core inflation may be underestimated. For the crypto market, this directly weakens the market’s aggressive bets on the Federal Reserve’s interest rate cuts within the year. The continued high interest rate environment will suppress the valuation levels of risk assets and may prompt funds to re-examine the logic of alternative assets under the inflation narrative. Note: The market is still in the bear market stage. After rebounding, continue to look for short selling opportunities and wait patiently for cheaper prices. $BTC $ETH #USCPIHot4.2CoreCools #SpaceXIPOvsOpticsCrash #HormuzStrikeRiskOff

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