BREAKING! US PPI Data Released! Here’s Bitcoin’s (BTC) Initial Reaction!

The latest US CPI data released earlier this week came in higher than expected, raising concerns about continued inflationary pressures and strengthening expectations of a Fed interest rate hike. Today’s US PPI data is also expected to provide further signals to the markets regarding the trajectory of inflation and the Fed’s monetary policy.

At this point, if the PPI data comes in above expectations, it could reinforce the expectation that interest rates will remain high for longer, leading to a rise in the dollar and US bond yields, and increasing selling pressure on risky assets like Bitcoin. Conversely, data below expectations could ease inflation concerns, supporting the expectation that the Fed may pursue a more dovish monetary policy. This could lead to an upward reaction in the Bitcoin price. Therefore, today’s PPI data is an important macroeconomic development that should be closely monitored in terms of Bitcoin’s short-term price direction.

With the market entirely focused on data today, the September figures for the US Producer Price Index (PPI), one of the indicators closely monitored by the Fed when making its decisions, were also released.

The data released is as follows:

Core Producer Price Index (Monthly): Announced 0.3% – Expected 0.3% – Previous 0.7%

Core Producer Price Index (Annual): Announced 5.0% – Expected 5.0% – Previous 5.0%

Producer Price Index (Monthly): Announced 0.3% – Expected 0.4% – Previous 1.3%

Producer Price Index (Annual): Announced 6.5% – Expected 6.6% – Previous 6.3%

According to The Kobeissi Letter, October PPI inflation rose to 6.5%, reaching its highest level since November 2022. CPI, PPI, and PCE inflation continue to rise in the US. All signs point towards a December interest rate hike.

Bitcoin’s initial reaction after the release of the PPI data was as follows:

*This is not investment advice.