Yesterday’s lower-than-expected CPI data triggered an upward movement in Bitcoin and altcoins. In this context, BTC rose above $64,000, while Ethereum and other altcoins also saw significant increases.
The lower-than-expected CPI data marks the strongest monthly decline since April 2020, with experts noting that the drop in energy prices is the most significant reason for the slowdown in inflation.
Following the CPI data, investors’ expectations regarding the Fed’s monetary policy have been reshaped. Prior to the CPI release, the probability of a Fed interest rate hike in July was priced at 40%, but this figure dropped to 16% after the data.
At this point, the weakening likelihood of a tighter monetary policy from the Fed increased appetite for risky assets like Bitcoin and pushed the BTC price higher.
After Bitcoin rose above $64,000 following the CPI data, attention is now focused on the US PPI data.
In this context, the June data for the US Producer Price Index (PPI), one of the indicators that the FED closely monitors when making its decisions, has also been released.
The data released is as follows:
Core Producer Price Index (Monthly): Announced 0.2% – Expected 0.3% – Previous 0.4%
Core Producer Price Index (Annual): Announced 4.7% – Expected 5.2% – Previous 4.9%
Producer Price Index (Monthly): Announced -0.3% – Expectation 0.0% – Previous 1.1%
Producer Price Index (Annual): Announced 5.5% – Expected 6.2% – Previous 6.5%
Bitcoin’s initial reaction after the release of the PPI data was as follows:
*This is not investment advice.
