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With numerous important macroeconomic developments expected to closely watch the markets in the coming week and beyond, Bitcoin has fallen again ahead of the first of these, the US Producer Price Index data.
Bitcoin, which encountered resistance at the $80,000 level at the start of the week, fell back below $78,000 ahead of the PPI release.
A similar trend prevailed in the altcoin market. Numerous altcoins, such as Ethereum, XRP, and BNB, continued their downward trend, losing value.
While today’s PPI and tomorrow’s CPI data are expected to influence the Fed’s September interest rate decision, the probability of a rate hike in September is still priced at 62.2%
According to analysts, a lower-than-expected PPI figure could be interpreted as a sign that inflationary pressures have eased and the likelihood of a Fed interest rate cut has strengthened. In this scenario, Bitcoin and other risky assets may react positively. Conversely, a higher-than-expected PPI figure could weaken expectations of an interest rate cut, creating short-term selling pressure on Bitcoin.
While the market is entirely focused on the PPI data today, the August 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 0.2% – Expectation 0.3% – Previous 0.2%
Core Producer Price Index (Annual): Announced 4.6% – Expected 4.6% – Previous 4.2%
Producer Price Index (Monthly): Announced 0.4% – Expected 0.4% – Previous 0.0%
Producer Price Index (Annual): Announced 5.4% – Expected 5.3% – Previous 4.7%
Bitcoin’s initial reaction after the release of the PPI data was as follows:
*This is not investment advice.
Source: <a href="https://cryptonews.net/news/finance/33424704/” target=”_blank” rel=”nofollow noopener”>cryptonews.net