2025-12-26 10:28:33

This morning, after the release of the PPI data, both the crypto market and traditional stock markets collectively rose. Bitcoin broke through $45,000, gaining 3,000 points; Ethereum surpassed $2,400; Nasdaq increased by 1.2%, and the Dow Jones rose by 0.8%. The market trends seem aligned, but the underlying driving logic actually differs significantly.

On the surface, this rally follows the old pattern—declining inflation data → rising expectations of rate cuts → liquidity expansion → capital inflows. However, things are not that simple.

First, a basic concept. PPI, or Producer Price Index, reflects the trend of factory gate prices for industrial products. An unexpected decline in PPI indicates a significant easing of inflationary pressures on the industrial side, which in turn drives CPI (Consumer Price Index) to continue cooling down. Previously, every time CPI declined, the market would rise because expectations of rate cuts were reinforced. This time, it’s different.

A sharp drop in PPI directly benefits enterprises. The costs of raw materials and production inputs are highly correlated with PPI. A decline in PPI means a substantial reduction in production costs for companies, directly improving profit expectations. For the stock market, this is not just a liquidity story but also a fundamental story. The crypto market, on the other hand, benefits more from expectations of rate cuts and the revaluation of risk assets.

Both markets are rising, but each for different reasons. Confusing this distinction can easily lead to pitfalls in subsequent volatility.

BTC0,17%

ETH0,08%

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NftDeepBreather

· 12-26 17:42

Damn, this PPI data is really intense. BTC directly broke through 45,000, it feels like it's about to take off. Wait, the stock market is rising because corporate profits are improving, are we just speculating on rate cuts here? That seems a bit uncertain. I need to carefully analyze the PPI situation, or else I might get trapped. This time is different, it's not just a simple liquidity game. The next wave might cool off very quickly. You're right, the same rise but for completely different reasons. The market is full of traps. Is breaking 45,000 a rebound? I always feel like there's something waiting for me later. When you break down the entire logical chain, crypto and the stock market are really playing separately. That's when things are most likely to go wrong.

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LucidSleepwalker

· 12-26 10:57

Alright, basically Bitcoin is fun because of rate cuts, stocks are fun because of profits, they seem similar on the surface but are actually two different things. --- When will this wave pull back? Feels like it's rising too fast. --- PPI decline benefits companies, retail investors need to see clearly what they're trading, don't blindly follow the trend. --- Here we go again, every time they talk about fundamentals, but in the end, it's just trend followers ruining the price. --- So is now a good time to bottom fish? Please give a clear answer. --- I just want to know who will crash first next time, I’m betting on the stock market. --- Oh my God, it's the same old story, I lost 20,000 last time I listened to this. --- The crypto market's money is really easy to cut, truly. --- A clear-minded sleepwalker says: This time is different, right? But last year they said the same. --- Wait, can I still buy ETH at this point? It’s not a big problem, right?

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UnluckyMiner

· 12-26 10:56

Once again, PPI easing, looking exciting as it rises, but in reality, the two markets are completely different. Stocks benefit from corporate cost reductions, while the crypto market is still relying on rate cut expectations; the difference is huge. --- Damn, a 3000-point increase sounds comfortable, but how many truly understand the logic? Most people just follow the trend and buy. --- PPI plummeting = positive for companies; this stock market rally is indeed supported by fundamentals. Bitcoin rising? It’s still mainly liquidity-driven speculation, don’t get it mixed up. --- I just want to know, when the rate cut expectations dissipate, will the crypto market still hold up? Stocks still have corporate earnings as a cushion. --- So, the reasons for the rise in different markets vary, and the subsequent volatility directions are also different. While the big smart guys are still blindly following the trend, it’s time to reflect.

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RealYieldWizard

· 12-26 10:49

Hey, wait a minute. Stock prices go up because company costs decrease, but when crypto prices rise, is it just pure liquidity? That logic is a bit subtle.

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AirdropJunkie

· 12-26 10:36

I understand what you mean, but brother, the PPI plummeting is still a bit suspicious. --- Bitcoin breaking 4.5K is great, but have we really figured out what's behind it? --- That's ridiculous. The stock market relies on fundamentals, while the crypto world drinks the easing rate soup—each playing their own game. --- Wait, does improving corporate profits help the coin price? I still feel like liquidity is the main factor. --- The typical synchronized rally with different intentions—I'm just worried about getting caught with a face slap later. --- PPI dropping so much, and the market is still so bullish? That's a bit sus, everyone. --- Warning: 1 more for stepping into the trap. Those who really mess up the logic will suffer this time.

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