This morning we talked about PPI, and we said the figure could determine market sentiment.
Now the number came out—and unfortunately it wasn’t comforting 👀
🇺🇸 Producer inflation in the US rose to 5.4% year-on-year in August, versus 4.8% in July, while the index increased by 0.4% over this month.
The story didn’t stop there.
Oil broke above $105 per barrel.
📈 The US 10-year Treasury yield reached around 4.91%,
and expectations of a rate hike next week rose to about 70%.
And here’s the missing link from the equation we were talking about this morning:
Inflation ↑ → Rate Expectations ↑ → Yields ↑ → Liquidity/Risk Appetite ↓ → pressure on Bitcoin 📉
Meaning, sometimes Bitcoin’s move doesn’t start from Bitcoin itself.
It starts with a small economic number, and then the contagion spreads to stocks, bonds, the dollar—and finally to high-risk assets (i.e., our home and our people 😂).
The important thing is we’ve got something else tomorrow.
Tomorrow we have CPI.
The market hasn’t finished talking yet.
If CPI comes in higher than expected—what do you expect we’ll see?
More pressure on Bitcoin?
Or do you think the market priced in a big chunk of this scenario already? 👀
$BZ
$BTC
#USAugustPPIRisesLessThanExpected
Now the number came out—and unfortunately it wasn’t comforting 👀
🇺🇸 Producer inflation in the US rose to 5.4% year-on-year in August, versus 4.8% in July, while the index increased by 0.4% over this month.
The story didn’t stop there.
Oil broke above $105 per barrel.
📈 The US 10-year Treasury yield reached around 4.91%,
and expectations of a rate hike next week rose to about 70%.
And here’s the missing link from the equation we were talking about this morning:
Inflation ↑ → Rate Expectations ↑ → Yields ↑ → Liquidity/Risk Appetite ↓ → pressure on Bitcoin 📉
Meaning, sometimes Bitcoin’s move doesn’t start from Bitcoin itself.
It starts with a small economic number, and then the contagion spreads to stocks, bonds, the dollar—and finally to high-risk assets (i.e., our home and our people 😂).
The important thing is we’ve got something else tomorrow.
Tomorrow we have CPI.
The market hasn’t finished talking yet.
If CPI comes in higher than expected—what do you expect we’ll see?
More pressure on Bitcoin?
Or do you think the market priced in a big chunk of this scenario already? 👀
$BZ
$BTC
#USAugustPPIRisesLessThanExpected
