US PPI Inflation Comes In At 2.4%; Bitcoin Drops Below $90k

The latest US Producer Price Index (PPI) data showed that the inflation has come in at 2.4%, up from the September reading of 1.9%. This comes a day after the US CPI inflation figure showed a spike in the inflationary figure for the first time in eight months. Besides, the market concerns are also fueled as this set of data is also crucial for the Fed’s decision on their monetary stimulus plan.

However, despite the hotter-than-anticipated CPI inflation data, Bitcoin has continued its run towards the north, hitting a new ATH of $93,000. This time looks to be different, though, as the flagship crypto has dropped below $90,000 following this US inflation figures.

US Inflation Came In At 2.4%

The latest data by the Labor Department showed that the US PPI inflation came in at 0.2% in October, after noting no change in the prior month and the highest since August 2024. On a year-over-year (YoY) basis, the inflation was at 2.4%, marking a jump from the 1.9% figure of September.

The Core Producer Price Index, which excludes the foods and energy prices, came in at 0.3%, as compared to 0.1% in the prior month and up from the market expectations of 0.2%. On a YoY basis, the reading showed that the Core US inflation was at 3.1% in October, up from 3% in September and the market expectations of 2.8%.

However, the hotter-than-anticipated US inflation data has further fueled market speculations over the US Fed’s next move with their policy rate plans. Notably, the latest US CPI inflation figures also came in hot, indicating a hawkish decision on the upcoming Fed rate cut decisions.

Will Bitcoin & Altcoins Rally?

Bitcoin has noted a strong rally despite yesterday’s hotter-than-anticipated US inflation figures. The top altcoins also followed suit, noting a surge as the investors appear to have shrugged off inflation concerns. Many in the market also said that investors are now focusing more on Trump’s win than the macroeconomic trends.

However, the rising inflationary pressure might pave the way for a hawkish move by the US Federal Reserve ahead. However, according to the CME FedWatch Tool, there is an 82.5% probability of another 25 bps Fed rate cut in December, up from the 60% bet noted yesterday. Having said that, the focus now shifts to the upcoming Fed Chair Jerome Powell’s speech later today.

BTC price today was up around 2% and exchanged hands at around $91,000, and its trading volume soared 18% to $118 billion. Over the last 24 hours, the flagship crypto has touched an ATH of $93,434.36, indicating the growing confidence of the investors. Besides, veteran trader Peter Brandt has also predicted BTC to hit $327K in the coming days, sparking market optimism.