Breaking: Bitcoin Holds The $61K Mark Despite Gloomy US PPI Data

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As an analyst with a background in economics and experience following the crypto market, I’ve grown accustomed to the significant impact of inflation data on both traditional financial markets and cryptocurrencies. The latest U.S. PPI data release has once again proven this point.

Bitcoin surpassed $61,000 following the unveiling of the latest U.S. Producer Price Index (PPI) figures. The crypto market closely monitored this data release, as investors were anxious about the potential implications for the Federal Reserve’s interest rate decisions due to rising inflation concerns. Surprisingly, the PPI for April increased by 0.5% over estimated predictions.

U.S. PPI Soars 2.2%

The crypto market closely monitored the newest Producer Price Index (PPI) figures from the U.S. Bureau of Labor Statistics, as these numbers serve as important indicators for inflation. Notably, there was a significant increase of 0.5% in the U.S. PPI inflation during April, which surpassed the previous month’s rise of 0.2%.

Last month, the year-over-year increase in U.S. Producer Price Index (PPI) was 2.2%, higher than the 2.1% surge in March. This is the most substantial rise since April 2023. At the same time, the Core PPI, which excludes food and energy prices, went up by 0.4% compared to the previous month’s increase and was predicted to be only 0.2%. Year-over-year, the Core PPI rose from 2.8% in March to 3.1% in April.

The unexpectedly high inflation figures have intensified market anxieties, as they continue to surpass the Federal Reserve’s desired 2% threshold. It is important to note that attention will now turn towards the upcoming U.S. Consumer Price Index (CPI) report, set for release on May 14.

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2024-05-14 15:39