The U.S. PPI data has been released, with both monthly and annual core PPI figures exceeding expectations, raising concerns about inflation and Fed rate cut predictions. Bitcoin's price showed an initial reaction post-release, impacting market sentiment.
After a rapid and strong rebound, the leading cryptocurrency Bitcoin (BTC) and its altcoins seem to have stalled in their recovery momentum.
The rise in oil prices has brought potential inflation risks, further diminishing market expectations for a Federal Reserve rate cut. Although the market generally predicts that the Federal Reserve will implement two rate cuts this year, the latest data on the U.S. Producer Price Index (PPI), one of the key reference indicators for Fed decisions, has been officially released.
The specific data is as follows:
- Core Producer Price Index (Monthly): Released value is 0.5%, higher than the expected 0.3%, previous value was 0.8%.
- Core Producer Price Index (Annual): Released value is 3.9%, higher than the expected 3.7%, previous value was 3.6%.
- Producer Price Index (Monthly): Released value is 0.7%, higher than the expected 0.3%, previous value was 0.5%.
- Producer Price Index (Annual): Released value is 3.4%, higher than the expected 2.9%, previous value was 2.9%.
Following the release of the U.S. PPI data, the initial reaction of Bitcoin's price is as follows.