Last night, the CPI data came in exactly as expected, coupled with the frequent calls from the president to cut interest rates, causing a sudden reversal in market sentiment and a rush of funds into the market.

The biggest concern in the market before was whether interest rates would stay the same or continue to rise. Now, the sentiment has shifted—generally expecting that this month might see no change, and there’s even a chance of starting a rate cut cycle. This expectation gap has become the main driving force behind the recent rally.

But honestly, whether interest rates will be cut or not still depends on what the end-of-month meeting says. Right now, the more important thing to watch is whether Bitcoin can hold steady at the 95,000 level.

This recent upward move last night also cleared out most of the short positions. According to the liquidation heatmap, longs in BTC, ETH, and SOL have already gained an absolute advantage, and positions are quite concentrated—meaning there is still risk if there’s a short covering or long liquidation.

Institutional funds are indeed betting on a rise. BTC net inflow was $628 million, ETH saw an inflow of $76.7 million, and SOL had a net inflow of $5.9 million. Especially, Bitcoin’s trading volume is very strong, basically leading the entire market upward.

The market rhythm has now become more moderate, with prices moving sideways within a range. The main index is testing repeatedly between 93,500 and 98,000, with short-term fluctuations in Bitcoin between 3,230 and 3,450, and SOL bouncing between 140 and 153.

Interestingly, many smaller tokens are following the market trend, and privacy-focused coins have been performing well recently, so it’s worth paying more attention to this sector.

Overall, the driving force behind this rally from institutions really shouldn’t be underestimated. In the short term, the bullish pattern remains dominant, but volatility may narrow. Stay alert at all times, closely monitor market rhythm, and adjust your trading strategies accordingly.