🚨BREAKING: US PPI came in at 4.7%
Expectations was 4.9%
This is the lowest level in 4 months
What is PPI and why does it matter for cryptocurrency
PPI data most commonly refers to the Producer Price Index
A key economic indicator published monthly by the U.S. Bureau of Labor Statistics (BLS)
Cryptocurrency markets especially Bitcoin and major altcoins have become highly sensitive to the U.S
PPI influences crypto primarily through it’s role as an inflation signal and leading indicator
So in essence
PPI data primarily affects crypto through it’s influence on inflation-expectations
Federal Reserve policy
Interest rates and overall market risk sentiment
Crypto assets like Bitcoin are treated as high-beta risk assets
They tend to perform better in environments of easier monetary policy
PPI is released around the middle of each month
#BTC
Expectations was 4.9%
This is the lowest level in 4 months
What is PPI and why does it matter for cryptocurrency
PPI data most commonly refers to the Producer Price Index
A key economic indicator published monthly by the U.S. Bureau of Labor Statistics (BLS)
Cryptocurrency markets especially Bitcoin and major altcoins have become highly sensitive to the U.S
PPI influences crypto primarily through it’s role as an inflation signal and leading indicator
So in essence
PPI data primarily affects crypto through it’s influence on inflation-expectations
Federal Reserve policy
Interest rates and overall market risk sentiment
Crypto assets like Bitcoin are treated as high-beta risk assets
They tend to perform better in environments of easier monetary policy
PPI is released around the middle of each month
#BTC