US PPI Comes In Red Hot At 2.6%, Can Bitcoin Regain Above This Key Level?
Highlights
- Producer Price Index (PPI) inflation in the United States rises to 2.6%.
- Traders waiting for further cues became cautious about Fed rate cuts as inflation data was hotter.
- Bitcoin price trades above $60k amid mixed reactions from 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 look out for further cues as BTC price closed the week above $60K.
PPI Inflation Rises To 2.6%
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.
Also Read: Reasons Why Bitcoin Price Is Dropping Despite Fed Rate Cut Odds?
Bitcoin Price to Fall After Latest Inflation Data?
While PPI inflation came hotter than expected, the odds of a 25 bps rate cut in September remain above 93%, as per data by CME FedWatch.
BTC price currently trades at $62,821, up 4% in the last 24 hours. The 24-hour low and high are $59,546 and $63,095, respectively. Furthermore, the trading volume has increased by 21% in the last 24 hours as BTC weekly closed above $60K, indicating a slight increased in interest among traders.
The derivatives market data on Coinglass showed traders have a mixed approach amid uncertainty. Options traders target BTC to close this week above the key level at $62,000, the max paint point of $60,000. Whereas, BTC futures open interest jumped 4% in the last 24 hours, with a surprise rebound to $33 billion.
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