Last night's CPI data landed, and the annual rate in May surged directly to 4.2%, setting a three-year high. On the surface, this number looks scary, but the market funds are not panicking at all. This wave of rising inflation is essentially caused by the geopolitical conflict in the Middle East, which has led to a surge in energy prices and is a typical input inflation. Core inflation is actually better than the market's worst expectations, and the depletion of negative sentiment has become short-term support. This is the fundamental logic behind last night's market not collapsing. As for the upcoming interest rate hike route, the Federal Reserve is now in a difficult position. Inflation exceeding 4 is indeed glaring, but raising interest rates alone cannot suppress crude oil prices. Combined with the current macro background, what the high-level wants is that the economic fundamentals will not collapse, and the Federal Reserve will not be allowed to completely drain liquidity through strong interest rate hikes. The next script is for the Federal Reserve to continue using hawkish rhetoric to scare the market and maintain high interest rates for a longer period of time, but it is difficult to implement substantial and significant interest rate hikes. This stalemate of no increase or decrease is the current liquidity background. The impact on the US stock market is very direct. If the risk-free rate cannot be lowered, technology stocks will continue to face valuation pressure. Don't even think about unilateral crazy cows in the short term. The smart money on Wall Street is already accelerating its shift towards anti inflation energy and pro cyclical sectors. The overall trend of the US stock market is a wide range of fluctuations, and the real intention of the main players is to repeatedly toss and switch chips at high levels. The impact on Bitcoin: native is the key focus of the market. Although the expectation of interest rate cuts has been repeatedly postponed, those indecisive floating funds have been thoroughly cleared in the past few months. Although the current market sentiment is suppressed, the main funds are firmly accepting the bottom range. As long as the market fully digests the expectation of high interest rate extension, the risk aversion consensus and subsequent fund games will surely reignite the long sentiment in the cryptocurrency market.