Breaking: Bitcoin Holds The $61K Mark Despite Gloomy US PPI Data

Bitcoin traded above the $61,000 mark, after the latest release of the highly anticipated U.S. Producer Price Index (PPI) data. Notably, the crypto market was eagerly waiting for the crucial inflation data, amid soaring concerns over the U.S. Federal Reserve’s policy rate plans. Meanwhile, the latest data showed that the U.S. PPI for April soared 0.5%, more than what the market was expecting.

U.S. PPI Soars 2.2%

The crypto market was eagerly waiting for the latest Producer Price Index (PPI) data, a key gauge for inflation, for cues on the current economic health and inflation level. Notably, the current data from the U.S. Bureau Of Labor Statistics showed that the U.S. PPI inflation soared 0.5% in April, more than the 0.2% surge noted in the prior month.

Meanwhile, on a year-over-year basis, the U.S. PPI jumped 2.2% last month, following a surge of 2.1% in March. It marks the largest increase since April 2023. Simultaneously, the U.S. Core PPI, excluding the food and energy prices rose 0.4%, as compared to the prior month’s surge and market expectation of 0.2%. On a YoY basis, the Core PPI rose 3.1% in April, after rising 2.8% in the prior month.

The hotter-than-anticipated inflation data has further fuelled concerns in the market, as it stays higher than the Fed’s 2% target range. Besides, it also sparked discussions over a further hawkish stance by the Federal Reserve. Notably, all eyes now shift to the U.S. Consumer Price Index (CPI) data, which is scheduled for Wednesday, May 14.

Also Read: BTC To Face $2.7 Billion Liquidation If Price Hits This Level

Bitcoin Price Holds Above The $61K

The Bitcoin price has witnessed a highly volatile scenario over the past few days, amid a flurry of macroeconomic and market concerns. Following the latest PPI data, Bitcoin continued its downward momentum but stayed above the brief $61,000 mark.

Meanwhile, the U.S. inflationary pressures have so far weighed on the investors’ sentiment, sparking concerns over a potential delay in the Fed’s policy rate plans. In addition, some of the latest data also hinted that the Fed may continue with its hawkish stance on the interest rate plans, dampening the investors’ sentiment.

However, following the current inflation data, the U.S. 10-year Bond Yield rose 0.29% to $4.494. On the other hand, the U.S Dollar Index Futures fell 0.07% to $105.040. Meanwhile, according to the CME FedWatch Tool, there is a 91.1% probability of the central bank keeping the interest rate unchanged at their upcoming meeting on June 12, 2024.

The Bitcoin price was down 1.51% and traded at $61,823.91, while its trading volume rose 8.44% to $25.67 billion. Over the last seven days, the BTC price noted a plunge of nearly 3%, while witnessing a drop of about 4% in the last 30 days.

Also Read: Binance Extends Backing For PEPE, WIF, ENA, WLD & Others, Price Rally Ahead?