Bitcoin traded above the $61,000 level, following the latest report of the highly anticipated US Producer Price Index (PPI) data. Crypto markets in particular are awaiting this important inflation data, amid growing concerns about the US Federal Reserve's policy rate plans. Meanwhile, the latest data showed that US PPI for April rose 0.5%, higher than market expectations.
The latest data on the Producer Price Index (PPI), an important indicator of inflation, provides an indication of the current health of the economy and the level of inflation. The latest data from the US Bureau of Labor Statistics showed that US PPI inflation rose 0.5% in April, higher than the 0.2% jump recorded in the previous month.
Meanwhile, on an annual basis, US PPI jumped 2.2% last month, after a 2.1% increase in March. This marks the largest increase since April 2023. At the same time, core US PPI. excluding food and energy prices, rose 0.4%, compared with the previous month's jump and market expectations of 0.2%. On an annual basis, Core PPI rose 3.1% in April, after rising 2.8% in the previous month.
This higher-than-expected inflation data has added to concerns in the market, as it remains above the Federal Reserve's 2% target range. In addition, it also sparked discussions about a possible hawkish stance by the Federal Reserve. Specifically, the focus now shifts to the US Consumer Price Index (CPI) data, due on Wednesday, May 14.
Bitcoin price has seen a very volatile scenario in the last few days, amid various macroeconomic and market concerns. Following the latest PPI data, Bitcoin continued its downward momentum but remained above the $61,000 level.
Meanwhile, US inflationary pressures have so far had a negative impact on investor sentiment, fueling concerns about a possible delay in the Federal Reserve's policy rate plan. Additionally, some recent data also hinted that the Fed may continue its hawkish stance on interest rate plans, which dampened investor sentiment.
However, after the current inflation data, the US 10-year Bond yield rose 0.29% to $4,494. In contrast, the US Dollar Futures Market Index fell 0.07% to $105.040. Meanwhile, according to the CME FedWatch Tool, there is a 91.1% chance the central bank will keep interest rates unchanged at their next meeting on June 12, 2024.
Bitcoin price fell 1.51% and traded at $61,823.91, while its trading volume increased 8.44% to $25.67 billion. Over the last seven days, the price of BTC has recorded a fall of almost 3%, while seeing a decline of around 4% in the last 30 days.
