Recently, the market has shown a downtrend, mainly attributed to the release of the PCE inflation data. Previously, Powell's hawkish remarks had already made the market uneasy, with CME's expectations for a rate cut in September dropping to 43%. The subsequent release of the PCE inflation data only added to the woes, with the broad PCE inflation year-on-year at 2.6%, higher than the expected 2.5%. The core PCE price index, closely watched by the Fed, rose 2.8% year-on-year in June, reaching a new high since February and exceeding the expected 2.7%. These data directly affected traders' sentiment, significantly shaking the market's confidence in a rate cut in September. Currently, CME's latest expectation for the probability of a rate cut in September is only 39%. This wave of decline actually reflects the market's adjustment of rate cut expectations, which can be seen as a normal pullback, merely delaying the anticipated rate cut bull run.

Another factor worth following is the tariff policy. The latest signed executive order will impose tariffs ranging from 15% to 41% on imports from 67 trading partners, bringing the tariff levels to the highest point in nearly a century. Although the new tariffs will take effect on August 7, providing room for negotiation among countries, the market remains cautious. In particular, the increase in tariffs on Canada from 25% to 35% has triggered a noticeable market reaction, indicating that further communication may be needed between the two countries.

For investment strategies, considering a gradual reduction after the price reaches 150,000, while also continuing to increase holdings in Bitcoin, may be a worthwhile option. However, given the current market uncertainty, investors should remain cautious, closely follow economic data and policy trends, and adjust their portfolios as needed.