US Service Industry Growth Slows, Inflation Persists, Bitcoin Volatile

On May 6th, the United States released several key service industry data points, revealing a slowing economy but persistent inflationary pressures. The S&P Global Services PMI came in at 50.8, falling short of expectations and the previous value, signaling that the service industry's expansion momentum is nearing stagnation. Similarly, the ISM Non-Manufacturing PMI reported 51.6, also below expectations, indicating weak domestic demand. Additionally, the Non-Manufacturing Price Paid Index surged to 65.1, hitting a nearly one-year high, which intensifies inflationary pressures and complicates the Federal Reserve's path towards easing monetary policy.

In response to the conflicting scenario of economic weakening and resilient inflation, market sentiment has become more cautious. Bitcoin, which had reached a high of 97.8K, has since retraced, lacking clear upward momentum. This volatility in the market reflects the uncertainty and the need for a clearer direction.

According to Bitunix analysts, the current data makes it highly unlikely for the Federal Reserve to cut interest rates this week. The market is expected to continue its volatility, with Bitcoin's short-term support level around 93K. If this level is broken, there is a potential retracement to 88K. The analysts suggest conservatively controlling positions, closely monitoring subsequent CPI and PPI data, and waiting for a clear direction to emerge before making significant moves.