The latest released U.S. Producer Price Index data is higher than market expectations, revealing that upstream inflationary pressures may be more severe than previously estimated. This situation will undoubtedly attract the Fed's high attention, as inflation rebound is one of the most concerning risks when considering the rate cut process.

The rise in PPI may trigger a series of chain reactions: upstream companies face rising costs, which may be transmitted to downstream, ultimately possibly pushing up the Consumer Price Index ( CPI ). If inflation remains high or rebounds, the Fed may become more cautious, which could lead to a delay or a reduction in the intensity of interest rate cuts.

However, if this data is analyzed in conjunction with the recently released non-farm employment and CPI data, there is still a significant possibility that the Fed will implement a rate cut in September. However, the rate cut may be adjusted from the originally expected 50 basis points to 25 basis points.

From the perspective of the Bitcoin futures market, there is a gap around $118,405. This evening, market participants took advantage of this news and quickly filled this gap through a sharp decline. This trend aligns with market expectations, and investors should remain patient as the overall trend has not fundamentally changed.

The fluctuations in current economic data remind us that the market environment is complex and changeable. Investors need to closely follow various economic indicators and remain vigilant about potential policy changes. At the same time, it is important to recognize that a single data point may not be sufficient to completely alter the overall economic situation; a comprehensive assessment of multiple factors is necessary.