#usppimissmayeasebtcpressure
🚨 U.S. PPI COMES IN LOWER THAN EXPECTED AT 6.5% — WILL THE FED STILL HIKE RATES IN DECEMBER? 🇺🇸📉
The U.S. Producer Price Index (PPI) for October came in at 6.5% year-over-year and 0.3% month-over-month.
This was slightly lower than the expected 6.6% YoY and 0.4% MoM. However, inflation is still rising from September's 6.3%, reaching its highest level in almost four years.
After this news, Bitcoin ($BTC) quickly bounced above $70,000. But many market analysts believe the Fed's plans may not change.
📌 Why Could the Fed Still Increase Interest Rates in December?
🏦 1. A 25 bps Rate Hike Is Still Expected
Earlier this week, October CPI data came in higher than expected at 0.4% MoM, while Core CPI was 0.3%.
This shows that inflation is still above the Fed's 2% target.
Markets are still expecting an 85%+ chance of a 25 bps rate hike on December 9, which could increase interest rates to 4.00%–4.25%.
🧊 2. The Risk of a 50 bps Hike Is Falling
Before the CPI report, Fed Governor Christopher Waller warned that higher core inflation could support a bigger 50 bps rate hike.
However, some PPI data came in slightly lower than expected. This reduced fears of a major 50 bps increase and gave Bitcoin and other risky assets some relief.
🔥 3. Inflation Is Still a Problem
Core PPI remains high at 5.0% year-over-year.
Oil prices are also staying high near $88–$89 because of tensions in the Middle East.
Capital Economics analysts believe the Fed may need to increase rates further. More rate hikes could even happen in early 2027.
💡 What Does This Mean for Bitcoin ($BTC)?
🚀 Bitcoin Gets a Relief Bounce Above $70K
Bitcoin recently fell to around $67,700 after more than $1.6 billion in liquidations.
But when fears of a bigger 50 bps rate hike started to decrease, buyers returned and BTC moved back above the important $70,000 level.
My Take: Inflation is still a major concern, and the Fed's next decision will be very important for Bitcoin and the entire crypto market.
🚨 U.S. PPI COMES IN LOWER THAN EXPECTED AT 6.5% — WILL THE FED STILL HIKE RATES IN DECEMBER? 🇺🇸📉
The U.S. Producer Price Index (PPI) for October came in at 6.5% year-over-year and 0.3% month-over-month.
This was slightly lower than the expected 6.6% YoY and 0.4% MoM. However, inflation is still rising from September's 6.3%, reaching its highest level in almost four years.
After this news, Bitcoin ($BTC) quickly bounced above $70,000. But many market analysts believe the Fed's plans may not change.
📌 Why Could the Fed Still Increase Interest Rates in December?
🏦 1. A 25 bps Rate Hike Is Still Expected
Earlier this week, October CPI data came in higher than expected at 0.4% MoM, while Core CPI was 0.3%.
This shows that inflation is still above the Fed's 2% target.
Markets are still expecting an 85%+ chance of a 25 bps rate hike on December 9, which could increase interest rates to 4.00%–4.25%.
🧊 2. The Risk of a 50 bps Hike Is Falling
Before the CPI report, Fed Governor Christopher Waller warned that higher core inflation could support a bigger 50 bps rate hike.
However, some PPI data came in slightly lower than expected. This reduced fears of a major 50 bps increase and gave Bitcoin and other risky assets some relief.
🔥 3. Inflation Is Still a Problem
Core PPI remains high at 5.0% year-over-year.
Oil prices are also staying high near $88–$89 because of tensions in the Middle East.
Capital Economics analysts believe the Fed may need to increase rates further. More rate hikes could even happen in early 2027.
💡 What Does This Mean for Bitcoin ($BTC)?
🚀 Bitcoin Gets a Relief Bounce Above $70K
Bitcoin recently fell to around $67,700 after more than $1.6 billion in liquidations.
But when fears of a bigger 50 bps rate hike started to decrease, buyers returned and BTC moved back above the important $70,000 level.
My Take: Inflation is still a major concern, and the Fed's next decision will be very important for Bitcoin and the entire crypto market.
