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Will US PPI Inflation Affect Bitcoin and Cryptos?

< SmartBot Blog

12/10/2023

 

 

On October 11, the United States released the Producer Price Index (PPI) data for September, showing a significant increase of 2.2%, surpassing the expected 1.6%. This is the largest surge since April 2023 and may increase pressure on risk assets such as stocks and cryptocurrencies. The main reason for the higher PPI is the rise in energy prices.

 

On October 12, the U.S. Labor Department will release the more closely watched Consumer Price Index (CPI) data, with expectations of a slight slowdown in inflation, which could alleviate selling pressure on stocks and cryptocurrencies.

 

Faced with these macroeconomic conditions and inflationary pressures, Bitcoin has displayed strong resilience. Compared to other cryptocurrencies, Bitcoin has lower volatility and is currently trading just above $27,000. Bitcoin whales have been accumulating this cryptocurrency, and institutional funds have seen healthy inflows. However, Bitcoin is approaching its halving in mid-2024, which may introduce increased volatility.

 

 

Resource: https://coingape.com/us-ppi-inflation-surges-the-fastest-since-april-23-will-it-impact-bitcoin-and-crypto/