A Strong Crypto Rally Is Set To Recoup Yesterday’s Loss, Here’s Why

The Consumer Price Index released yesterday showed an 8.3% YoY inflation, instead of the expected 8.1%. As a result, the crypto market crashed hard. Bitcoin price dropped over 10% in the last 24 hours. Meanwhile, Ethereum dropped another 8%. However, the Producer Price Index data about to be revealed can start a major crypto rally.

The producer Price Index is the change in price that producers receive for providing their goods and services. The US Bureau Of Labour Statistics also reveals this data.

Meanwhile, Elon Musk’s deflation warning looks more likely as the Fed is all set for a mega hike.

Why PPI Is Extremely Important For Crypto Rally

Yesterday’s CPI data strengthened the Fed’s hawkish stance. The Federal Reserve is all set for a jumbo hike in the next FOMC meeting on the 21st of September. Experts believe that markets are pricing in a 48% chance of a 100 bps interest rate hike. Despite the mega hike, the Fed will not pivot from its stance for at least another FOMC meeting.

However, many believe the CPI to be a lagging indicator of inflation. The prices of products and services have undoubtedly gone down. Therefore many believe that today’s PPI data, a more accurate representation of the inflation level, can temper the Fed’s stance.

Michael van de Poppe, a major crypto influencer and CEO of Eight Global, believes that the PPI can rally the crypto market.

@wolf-of-streets, a major crypto influencer, reveals that the PPI may even be more important than the CPI data released yesterday. The expected MoM change is -0.1%. If the expected PPI indeed holds, the crypto markets will rally as it is a sign of cooling inflation. He also reveals that deflation is in the pipeline.

Since the COVID price surge, the price of most commodities has gone down. Meanwhile, production has become cheaper. Therefore, the price of risky assets can surge anytime now.

When Will PPI Be Revealed

The US Bureau of Labor Statistics reveals the PPI data. It will be released today at 6:00 PM IST or 8:30 AM EST.

TAGS
Federal Reserve

Recommended
Price Analysis

Best Crypto Presales To Invest In September 2025 – Top Upcoming Presale Tokens

Best Crypto AI Trading Bots In 2025

Top Meme Coins To Buy In September 2025

Nidhish Shanker

Nidhish is a technology enthusiast, whose aim is to find elegant technical solutions to solve some of society's biggest issues. He is a firm believer of decentralization and wants to work on the mainstream adoption of Blockchain.

Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.