Yesterday’s lower-than-expected CPI data triggered an upward move in Bitcoin and altcoins. In this context, $BTC surpassed $64,000, while Ethereum and other altcoins also saw significant increases.
The weaker-than-expected CPI data marks the biggest monthly decline since April 2020, with experts noting that falling energy prices are the most important reason for slowing inflation.
Related news BREAKING! Critical data on inflation in the United States released! What is Bitcoin ($BTC) Initial reaction?
Following the CPI data, investors’ expectations regarding the Fed’s monetary policy have been reshaped. Before the CPI was released, the probability of a Fed interest rate hike in July was estimated at 40%, but that figure fell to 16% after the data was released.
At this point, the reduced likelihood of a tightening of monetary policy by the Fed has increased the appetite for risky assets like Bitcoin and pushed the $BTC higher price.
After Bitcoin surpassed $64,000 following CPI data, attention is now focused on US PPI data.
In this context, June data from the US Producer Price Index (PPI), one of the indicators that the FED closely monitors when making its decisions, was also released.
The published data is as follows:
Basic producer price index (monthly): announced 0.2% – expected 0.3% – previous 0.4%
Basic producer price index (annual): announced 4.7% – expected 5.2% – previous 4.9%
Producer price index (monthly): Announced -0.3% – Expectation 0.0% – Previous 1.1%
Producer price index (annual): announced 5.5% – expected 6.2% – previous 6.5%
Bitcoin’s initial reaction after the PPI data was released was as follows:
*This does not constitute investment advice.