Bitcoin slides amid hotter-than-expected US wholesale inflation
Bitcoin traded down after U.S. wholesale prices jumped 0.5% in April, another sign inflation remains sticky.Traders are looking at Tuesday’s PPI reading and Wednesday’s CPI data for clues on rates.
The largest digital asset by market cap has fallen below the $62,000 mark, having declined 1.6% in the past 24 hours to trade at $61,731 at 10:10 a.m. ET, according to The Block’s Price Page .
Bitcoin declined as hotter-than-expected U.S. wholesale inflation wobbled markets. Image: The Block.
According to the U.S. Bureau of Labor Statistics on Tuesday, the Producer Price Index (PPI) rose 0.5% in April. Economists had forecast a smaller 0.3% increase in PPI.
Traders will closely monitor this week's inflation readings
Traders will closely monitor Tuesday's PPI and Wednesday's Consumer Price Index (CPI) for clues regarding interest rates. According to Wintermute analysts, the U.S. Federal Reserve has set the threshold for initiating monetary easing at three consecutive softer inflation readings.
This week's hotter inflation data could provide insight into how the Federal Reserve might shape its monetary policy decisions in upcoming Federal Open Market Committee (FOMC) meetings.
The higher-than-expected wholesale inflation reading could add pressure on the U.S. central bank to maintain higher interest rates for a longer period, a scenario that would discourage investment in risk assets such as bitcoin.
Interest rate traders react to hotter inflation
After Tuesday's PPI print, the CME's FedWatch tool now forecasts a 29.2% chance of a rate cut at July's FOMC meeting and a 48.9% chance at September's meeting. Interest traders forecast a 91.3% chance that rates will remain unchanged at June's meeting.
"The FOMC has defined the bar to begin loosening monetary conditions as three consecutive softer inflation prints, we would expect a market response to any surprise beat or miss this week. Additionally, Powell is due to speak tomorrow which will be watched closely for additional policy hints," Wintermute OTC Trading Desk analysts said in an email sent to The Block.
The GM 30 Index , representing a selection of the top 30 cryptocurrencies, fell 2.18% to 126.96 in the same period.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
2025 TGE Survival Ranking: Who Will Rise to the Top and Who Will Fall? Complete Grading of 30+ New Tokens, AVICI Dominates S+
The article analyzes the TGE performance of multiple blockchain projects, evaluating project performance using three dimensions: current price versus all-time high, time span, and liquidity-to-market cap ratio. Projects are then categorized into five grades: S, A, B, C, and D. Summary generated by Mars AI This summary was generated by the Mars AI model, and the accuracy and completeness of its content are still being iteratively updated.
Mars Finance | "Machi" increases long positions, profits exceed 10 million dollars, whale shorts 1,000 BTC
Russian households have invested 3.7 billion rubles in cryptocurrency derivatives, mainly dominated by a few large players. INTERPOL has listed cryptocurrency fraud as a global threat. Malicious Chrome extensions are stealing Solana funds. The UK has proposed new tax regulations for DeFi. Bitcoin surpasses $91,000. Summary generated by Mars AI. The accuracy and completeness of this summary are still being iteratively updated by the Mars AI model.
How much is ETH really worth? Hashed provides 10 different valuation methods in one go
After taking a weighted average, the fair price of ETH exceeds $4,700.
Dragonfly partner: Crypto has fallen into financial cynicism, and those valuing public blockchains with PE ratios have already lost
People tend to overestimate what can happen in two years, but underestimate what can happen in ten years.
Trending news
MoreCrypto prices
More
