Stock Market Rises While Cryptocurrency Market Declines! With CPI Announcement Approaching, On-Chain Whales Accumulate $230 Million to Short Major Cryptocurrencies.

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Stock Market Rises, Cryptocurrency Market Declines

U.S. CPI to be Announced Tonight

On-chain Whales Shorting the Market

The U.S.-China trade war was officially announced to be paused yesterday, with the U.S. reducing tariffs on Chinese goods from 145% to 30% within 90 days, while China will lower tariffs on U.S. goods from 125% to 10% in the same timeframe. This news significantly alleviated market uncertainty, leading to a surge in stock prices. Major U.S. stock indices all closed with gains.

In contrast, Bitcoin fell back after reaching a high of $105,000 yesterday afternoon, dropping below $101,000 at one point. Other altcoins also experienced price corrections. According to data from Coinglass, a total of 206,338 people were liquidated globally in the past 24 hours, with a total liquidation value of $688 million. Some analysts believe this correction may be due to investors taking profits or reallocating funds from Bitcoin to the stock market.

The U.S. Consumer Price Index (CPI) for April will be announced tonight, with economists generally expecting the April inflation rate to remain unchanged at 2.4%. Excluding the more volatile food and energy prices, the “core CPI” year-on-year growth rate is estimated to be 2.8%, the same as last month, which is also the lowest level in four years.

Jonathan Pingle, Chief Economist at UBS, noted in a report to clients on Monday: “We expect the first signs of inflation triggered by tariffs to appear in the April Consumer Price Index (CPI) to be released on Tuesday.” Although the report on Tuesday may show some signs of tariff-induced inflation, economists generally believe that the true impact of the policy will take months to fully manifest. Stephen Juneau, Senior U.S. Economist at Bank of America, stated: “This is probably the first time we can slightly observe the impact of tariffs, but it won’t be comprehensive, mainly concentrated in the automotive category.”

Juneau added that the delay in imposing tariffs on China should relieve some upward pressure on inflation in the coming months, but the overall trend still leans towards moderate increases. “The risk of recession has decreased, and the upward pressure on inflation may also decline slightly, but overall inflation will continue to rise.”

On the other hand, since Tuesday’s CPI data will not yet reflect the changes brought by the “90-day tariff pause on China,” some market strategists predict that even if inflation data exceeds expectations, it is unlikely to dampen the current stock market rally.

On-chain data also indicates that several whales established short positions last night in anticipation of market volatility. According to information monitored by on-chain analyst Onchain Lens, one whale transferred 10 million USDC to Hyperliquid last night to expand its 5x leveraged short positions on BTC, ETH, and SOL. Its total deposits on Hyperliquid reached 50.5 million USDC, with the BTC short position valued at up to $109 million, and total short positions amounting to approximately $230 million.