tl;dr
The U.S. Bureau of Labor Statistics reported that the Producer Price Index (PPI) inflation in the United States has risen to 2.6%, exceeding market expectations. This has led to caution among traders regarding potential Fed rate cuts, impacting Bitcoin prices with a selloff observed. The inflation i...
PPI inflation in the United States rises to 2.6%, delaying Bitcoin price recovery.
The U.S. Bureau of Labor Statistics reports 2.6% PPI inflation, raising concerns over Fed rate cuts. BTC price falls 2% to $57,486 after hotter-than-expected PPI inflation data. Odds of 25 bps rate cut in September remain above 93% despite PPI inflation rise.
The U.S. Bureau of Labor Statistics reported that the Producer Price Index (PPI) inflation in the United States has risen to 2.6%, exceeding market expectations. This has led to caution among traders regarding potential Fed rate cuts, impacting Bitcoin prices with a selloff observed. The inflation increase has raised concerns about the timeline for Fed rate cuts, despite the U.S. Federal Reserve not considering PPI a key metric for inflation. The U.S. Dollar Index (DXY) exhibited volatility after the inflation data, while US treasury yield also experienced fluctuations. Despite the PPI inflation being higher than anticipated, the likelihood of a 25 bps rate cut in September remains above 93%, as per CME FedWatch data. As a result, BTC price currently trades at $57,486, showing a 2% decrease in the last 24 hours, with mixed sentiments observed among options and futures traders. The Producer Price Index (PPI) inflation in the United States rises to 2.6%, according to the latest release by The U.S. Bureau of Labor Statistics on Friday. Traders waiting for further cues became cautious about Fed rate cuts as inflation data was hotter. Bitcoin traders also responded immediately and BTC price started showing some selloff.
PPI INFLATION RISE DELAYS BITCOIN PRICE RECOVERY The U.S. Bureau of Labor Statistics release showed that annual Producer Price Index data came in at 2.6%, higher than market expectations of 2.3, up from 2.2% last month. Core PPI YoY also came 0.5% higher at 3.0%, much higher than 2.3% in the previous month. In month-over-month change, Producer Price Index have also increased from -0.2% to 0.2%, a rise of 0.4% in a month. Meanwhile, Core PPI rises from 0.3% to 0.4% in a month. Futures tied to S&P 500, Dow Jones Industrial Average, and Nasdaq 100 were flat after the inflation data. The Producer Price Index inflation has increased for five consecutive months now, even as US CPI is declining. While the U.S. Federal Reserve doesn’t consider PPI among key metrics to gauge inflation, the rise has raised concerns over Fed rate cuts timeline. US Dollar Index (DXY ) shows volatility after inflation data, with a reading currently at 104.34. DXY has declined after the CPI data. Meanwhile, US treasury yield has increased by 0.021% to 4.205%, but fell from 4.47% earlier this month.
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