What impact does the release of the US PPI data that exceeded expectations have on BTC?
According to the latest data released by the US Bureau of Labor Statistics on Friday, the US producer price index (PPI) inflation rate in 2019 rose to 2.6% from 2.2% last month, higher than the market expectation of 2.3%. The core PPI also rose 0.5% year-on-year to 3.0%, much higher than 2.3% last month. In terms of month-on-month changes, the producer price index also rose from -0.2% to 0.2%, an increase of 0.4% in a month. At the same time, the core PPI rose from 0.3% to 0.4% in a month.
After the inflation data was released, futures linked to the S&P 500, Dow Jones Industrial Average and Nasdaq 100 were flat. Although the US CPI is falling, the producer price index inflation has risen for five consecutive months. Although the Fed does not regard PPI as a key indicator of inflation, the rise in PPI has raised concerns about the Fed's timetable for rate cuts.
The U.S. Dollar Index ( DXY ) fluctuated after the release of the inflation data and is currently reading 104.34. The DXY fell after the release of the CPI data. Meanwhile, the U.S. Treasury yield rose 0.021% to 4.205%, but it is lower than the 4.47% earlier this month.
Despite the higher-than-expected PPI inflation, the probability of a 25 basis point rate cut in September is still over 93%, according to CME FedWatch. BTC price is currently trading at $57,486, down 2% in the past 24 hours. The 24-hour minimum and maximum prices are $56,590 and $58,950 respectively. In addition, the trading volume has fallen by 3% in the past 24 hours, indicating a slight decline in trader interest.
Coinglass's derivatives market data shows that traders have adopted a mixed strategy amid uncertainty. Options traders are targeting a BTC rebound to at least $58,000, close to the high of $58,500. While BTC futures open interest fell 2% in the past 24 hours, the rebound is still expected to reach $30 billion.
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