Leading cryptocurrency Bitcoin and altcoins are currently trading sideways within a certain range after experiencing sharp declines in recent weeks.
Ongoing tensions between the US and Iran continue to drive up oil prices. This, in turn, increases the risk of further inflation, strengthening expectations that it could force the Fed to raise interest rates.
Yesterday’s CPI data showed the fastest increase in the last three years, while data on the US Producer Price Index (PPI), one of the indicators closely monitored by the Fed when making its decisions, was also released.
The data released is as follows:
Core Producer Price Index (Monthly): Announced 0.4% – Expectation 0.5% – Previous 1.0%
Core Producer Price Index (Annual): Announced 4.9% – Expected 5.4% – Previous 5.2%
Producer Price Index (Monthly): Announced 1.1% – Expectation 0.7% – Previous 1.4%
Producer Price Index (Annual): Announced 6.5% – Expected 6.4% – Previous 6.0%
According to The Kobeissi Letter, May PPI inflation surged to 6.5%, exceeding expectations of 6.4% and reaching its highest level since November 2022. Core PPI inflation came in at 4.9%, consistent with the revised levels of April. In this context, PPI inflation has now reached pandemic stimulus levels.
Bitcoin’s initial reaction after the release of the PPI data was as follows:
*This is not investment advice.
