According to U.Today, the release of the United States Producer Price Index (PPI) for May is set to influence a new growth trajectory for the market. This data significantly impacts both the broader traditional market and the Bitcoin and crypto ecosystem. The PPI reading is a key economic data point used to gauge the effect of inflation on the world's largest capital market. The month-on-month reading for the PPI was -0.2%, compared to the previous reading of 0.5%.
This value, which is better than the expected 0.1%, suggests that the Federal Reserve's monetary policies regarding inflation stability have been effective. This could lead to a recovery in risk-on assets like Bitcoin. However, at the time of writing, Bitcoin has continued its bearish trend, falling by 3.76% in the past 24 hours to $67,351. This is a significant deviation from the mildly bullish momentum earlier in the week when the coin made significant strides to surpass the $70,000 price level.
The current sentiment suggests that the digital currency may be reacting negatively to the news. A stronger PPI indicates a robust economy, which provides corporate investors with additional motivation to opt for traditional assets over risk assets. Despite this, the impact of spot ETF trading could alter the overall narrative. With spot Bitcoin ETFs actively traded in the United States, the United Kingdom, Canada, Hong Kong, and Australia, there are ample opportunities to purchase the coin and potentially drive the price up in the long term.
Despite the downturn, over 513 million Bitcoin, equivalent to $34,291,565,528, has been traded in 24 hours, representing a 17% increase. This could indicate a bullish shift that may contribute to the BTC recovery challenge.