Bitcoin (BTC) edged closer to $61,500 as markets opened on October 11, showing resilience despite new inflation concerns in the United States.
Data from Cointelegraph Markets Pro and TradingView indicated Bitcoin reaching local highs of $61,476 on Bitstamp.
The latest U.S. macroeconomic data, the Producer Price Index (PPI), came in higher than expected at 1.8%, surpassing the forecast of 1.6%.
According to the Bureau of Labor Statistics (BLS), “the index for final demand less foods, energy, and trade services inched up 0.1 percent in September after rising 0.2 percent in August,” while prices for final demand excluding these sectors increased by 3.2% over the past 12 months.
This PPI increase joins the Consumer Price Index (CPI) in signaling growing inflationary pressures, posing further challenges for the Federal Reserve, which is already grappling with inflation.
Reacting to the PPI results, trading resource The Kobeissi Letter stated on X, “Both Core PPI and CPI inflation are now officially back on the rise. The Fed did not need a 50 basis point rate cut.”
While Bitcoin initially benefited from the Fed’s recent rate cut, crypto and risk assets began diverging this week, with stocks rising while Bitcoin and altcoins faced selling pressure.
The PPI print had a moderate impact on market expectations for the Fed’s next interest rate decision in November. According to CME Group’s FedWatch Tool, the likelihood of a smaller 0.25% rate cut stood at nearly 84%, while the chance of rates remaining unchanged was about 17%.
As for Bitcoin’s price action, analysts identified key levels to watch for potential resistance retests.
“Bitcoin reclaimed $60,600/800 overnight,” analyst Justin Bennett noted, referencing the recovery from $58,860 lows.
He added, “I never trust an Asia session pump, but if this holds, we could get that $62k retest.”
