PPI Blows Past Expectations—If You’re Thinking of Going Long on BTC Tonight, Don’t Rush to Use Leverage
Now that September’s PPI is out, bulls will have to think twice. U.S. PPI rose 1.3% month over month and 6.3% year over year, with the monthly increase the largest since March 2022. If you were waiting for inflation to cool and monetary easing to give crypto another boost, this report isn’t exactly what you wanted to hear. Energy was the main driver this time, with gasoline prices up 20.3% in a month. But don’t rush to comfort yourself by saying “it’s all oil prices’ fault”—service prices are rising too. Excluding food, energy, and trade services, prices were still up 0.5% month over month. At least based on this report, inflation hasn’t eased enough for markets to feel reassured.
CPI Comes in Hotter Than Expected, BTC Plunges! Inflation Is Heating Up Again—Can the Crypto Market Still Make a Comeback?
The U.S. September CPI data was officially released tonight, and the results came in hotter than the market expected. BTC plunged soon after the release, while the dollar and Treasury yields strengthened in tandem. Clearly, this is not good news for the crypto market. But I believe what deserves more attention than the short-term drop is the shift underway in market expectations for the Fed’s monetary policy. 📊 First, let’s look at tonight’s key data: U.S. September CPI rose 3.7% year over year, above the expected 3.6% and the previous 3.4%; month over month, it rose 0.6%, in line with expectations. Core CPI rose 2.6% year over year, above the expected 2.5% and the previous 2.4%; month over month, core CPI rose 0.3%, also above the expected 0.2%. Overall, three of the four key figures exceeded expectations, suggesting that U.S. inflation remains stubborn and still has a way to go before it truly stabilizes.