Bitcoin moved up to its highest levels since June 22 as US PPI inflation numbers provided the week’s second surprise macro data drop.
Bitcoin (BTC) saw three-week highs on Wednesday as US inflation data beat expectations for a second day.
Data from TradingView showed BTC/USD reaching $65,500 for the first time since June 22.
BTC/USD 12-hour chart. Source: Cointelegraph/TradingView
The June print of the Producer Price Index (PPI) came in cool at 5.5% year-on-year after a 0.3% monthly decrease, per data from the Bureau of Labor Statistics (BLS).
“The June decline in the index for final demand can be attributed to prices for final demand goods, which fell 1.4 percent. In contrast, the index for final demand services moved up 0.2 percent,” an official news release stated.
Reacting, economist Mohamed El-Erian was upbeat on the outlook for risk assets and Federal Reserve policy.
“These much better-than-expected figures are set to boost equities and further temper market expectations for upcoming interest rate hikes,” he wrote in a post on X.
PPI joined Tuesday’s Consumer Price Index (CPI) release, which surprised to the downside despite macro pressure from the US-Iran war and its impact on oil prices.
“Inflation expectations continue to decline,” trading resource The Kobeissi Letter added, referencing bets on a Fed interest-rate hike from users of prediction service Polymarket.
The latest data from CME Group’s FedWatch Tool also showed change afoot in expectations for the Fed’s September decision, with a 0.25% hike no longer the most likely option.
Fed target rate probability comparison for September FOMC meeting (screenshot). Source: CME Group
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