Crypto Market Extends Gains As U.S. PPI Inflation Drops To 2.3%
Highlights
- Bitcoin broke above $119,000 following the release of the US PPI data.
- Ethereum, XRP, Solana, Dogecoin are also up.
- The US PPI inflation data came in lower than expectations, which is a positive for the markets.
The crypto market is up today and looks set to rally higher on the back of the US PPI inflation data release. The data showed that inflation has dropped, lower than expectations, a development which supports a Fed rate cut and is positive for Bitcoin and other cryptocurrencies.
Crypto Market In Focus As U.S. PPI Inflation Falls
TradingView data shows that the crypto market cap quickly spiked on the back of positive U.S. PPI inflation data. The market cap is up 2% today, with a value of around $3.75 trillion.
The Bitcoin price has led this rally, rising to as high $119,000 today. Other crypto prices are also up, with Ethereum coming close to touching the psychological $3,200 level. XRP, Solana, and Dogecoin are up 2%, 3.57%, and 3.66% respectively, in the last 24 hours.
The crypto market is also eyeing further gains, thanks to the inflation data. According to Bureau of Labor data, the yearly PPI inflation dropped to 2.3% in June, lower than expectations of 2.5%. The monthly inflation also dropped to 0.0%, lower than the expected 0.2%.
The Core PPI data also came in positive. The yearly figure dropped to 2.6%, compared to the 2.7% predicted by market experts. Meanwhile, the monthly figure fell to 0.0% as against 0.2%.
A lower-than-expected figure is a positive for the crypto market since it could persuade the Fed to cut rates. A rate cut could send crypto prices higher since quantitative easing (QE) could inject more liquidity into the market.
It is worth mentioning that the PPI also provides some relief, considering that the yearly CPI inflation rose to 2.7% in June, the highest level since February 2025. As such, this allays fears that inflation is again spiraling.
Fed Still Not Likely to Cut Rates This July
The Fed isn’t expected to cut rates at its July 30 FOMC meeting. CME FedWatch data shows that the odds of rates remaining unchanged have further increased to 97.4%.
However, crypto market investors could see rate cuts later in the year. Bank of America (BofA) predicts that there will be two 25-basis-point rate cuts by the Fed, in September and October.
However, some Fed officials, such as President Beth Hammack and Susan Collins, would need more convincing that inflation is truly cooling, despite the Trump tariffs. President Collins recently called for patience on interest rate cuts. She remarked that the U.S. was in a good position for them just to wait and see how policies like the tariffs impact inflation.
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