Ahead of numerous important macroeconomic events expected to be closely watched by the markets in the coming week and beyond, Bitcoin has fallen again in anticipation of the first of them — the U.S. Producer Price Index data.
Bitcoin, which faced resistance at the $80,000 level at the beginning of the week, fell below $78,000 ahead of the PPI (insurance premium) data release.
A similar trend was observed in the altcoin market. Numerous altcoins such as Ethereum, XRP, and BNB continued their downtrend, losing value.
Although today's Producer Price Index (PPI) data and tomorrow's Consumer Price Index (CPI) data are expected to influence the Fed's interest rate decision in September, the probability of a rate hike in September is still estimated at 62.2%, according to Fed Watch Tool data.
Analysts believe a lower-than-expected PPI reading could be interpreted as a sign of easing inflationary pressures and increasing the likelihood of a Fed rate cut. In this scenario, Bitcoin and other risky assets could react positively. Conversely, a higher-than-expected PPI reading could weaken expectations for a rate cut, creating short-term selling pressure on Bitcoin.
Today, all market attention is focused on the Producer Price Index (PPI) data, but the August U.S. Producer Price Index (PPI) data, one of the indicators the Federal Reserve closely monitors in its decision-making, was also released.
The released data is as follows:
Core Producer Price Index (MoM): Actual 0.2% – Expected 0.3% – Previous 0.2%
Core Producer Price Index (YoY): Actual: 4.6% – Expected: 4.6% – Previous: 4.2%
Producer Price Index (MoM): Actual 0.4% – Expected 0.4% – Previous 0.0%
Producer Price Index (YoY): Actual: 5.4% – Expected: 5.3% – Previous: 4.7%
Following the release of the PPI data, Bitcoin's initial reaction was as follows:
*This is not investment advice.
