Bitcoin and global markets are focused on the PPI data today, following yesterday’s release of US inflation data. Although experts stated they do not expect a September rate hike from the Fed after the CPI data came in line with expectations, according to FedWatchTool data, the probability of a September rate hike is still priced in above 40%.
According to expert analysts, a lower-than-expected PPI figure could be interpreted as a sign that inflationary pressures have eased and the likelihood of a Fed interest rate cut has strengthened. In this scenario, Bitcoin and other risky assets may react positively. Conversely, a higher-than-expected PPI figure could weaken expectations of an interest rate cut, creating short-term selling pressure on Bitcoin.
While the market is entirely focused on the PPI data today, the July data for the US Producer Price Index (PPI), one of the indicators closely monitored by the Fed when making its decisions, has also been released.
The data released is as follows:
Core Producer Price Index (Monthly): Announced 0.2% – Expectation 0.3% – Previous 0.2%
Core Producer Price Index (Annual): Announced 4.2% – Expected 4.2% – Previous 4.7%
Producer Price Index (Monthly): Announced 0.0% – Expectation 0.2% – Previous -0.3%
Producer Price Index (Annual): Announced 4.7% – Expected 4.9% – Previous 5.5%
Bitcoin’s initial reaction after the release of the PPI data was as follows:
*This is not investment advice.
