Huobi HTX Chief Analyst Cloud: Crypto market leverage has been largely flushed out, limited room for further short-term deep declines.

Bitcoin briefly fell to around $73,000 after U.S. October CPI came in above expectations, prompting markets to price a possible 50 basis point December rate hike. Huobi HTX chief analyst Cloud argued the 50 bp scenario is unlikely and that 25 bp remains the base case, calling the selloff a repricing rather than the start of a trend. He cited the Fed's preference for data continuity, fading tariff- and rent-driven inflation stickiness alongside weakening employment, and credit spreads widening from 93 bp to 348 bp as reasons against aggressive tightening. In crypto markets, funding rates have turned negative, perpetual futures open interest has dropped nearly 20% in a week, and the Fear & Greed Index has sunk into deep fear, suggesting leverage has been largely flushed out and further near-term downside is limited. Cloud cautioned that oversold conditions do not guarantee an immediate rebound, with confirmation needed from CPI cooling over the next two months; a sustained downtrend would require two consecutive CPI upside surprises and an actual 50 bp hike, which he sees as low probability.