Bitcoin trades above the $61,000 mark following the latest release of the Producer Price Index (PPI) data. Notably, the cryptocurrency market is eagerly awaiting key inflation data amid heightened concerns over the Federal Reserve’s policy rate plans. Meanwhile, the latest data showed that the U.S. PPI surged 0.5% in April, beating market expectations.
U.S. PPI surged 2.2%
The cryptocurrency market is eagerly awaiting the latest Producer Price Index (PPI) data, a key measure of inflation, to get clues about the current health of the economy and inflation levels. Notably, the latest data from the U.S. Bureau of Labor Statistics showed that U.S. PPI inflation surged 0.5% in April, outpacing the 0.2% increase in the previous month.
Meanwhile, the U.S. PPI rose 2.2% year-on-year last month after surging 2.1% in March. This was the largest increase since April 2023. Meanwhile, the U.S. core PPI, which excludes food and energy prices, rose 0.4%, higher than last month’s surge and the 0.2% expected by the market. Core PPI rose 3.1% year-on-year in April, up 2.8% in the previous month.
Market concerns were further heightened by higher-than-expected inflation data, which remained above the Fed’s 2% target range. Moreover, this has sparked discussions about the Fed further strengthening its hawkish stance. Notably, all eyes now turn to the US Consumer Price Index (CPI) data, which is scheduled to be released on Wednesday, May 14.
Bitcoin prices have been highly volatile over the past few days, amid a range of macroeconomic and market concerns. Bitcoin continued its downward momentum after the latest PPI data, but remained above the short-lived $61,000 mark.
Meanwhile, inflationary pressures in the US have so far weighed on investor sentiment, raising concerns that the Fed may delay its policy rate plans. In addition, some of the latest data also suggested that the Fed may continue to maintain a hawkish stance on its interest rate plans, which has dampened investor sentiment.
However, based on the current inflation data, the US 10-year bond yield rose 0.29% to $4.494. On the other hand, dollar index futures fell 0.07% to $105.040. Meanwhile, according to the CME FedWatch tool, the probability of the central bank keeping interest rates unchanged at its meeting on June 12, 2024 is 91.1%.
Bitcoin price fell 1.51% to $61,975, and trading volume rose 8.44% to $25.67 billion. In the past 7 days, BTC price has plummeted by nearly 3%, and in the past 30 days it has fallen by about 4%.
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