Cryptocurrency markets rally despite recent mixed US inflation data
Cryptocurrency markets staged a recovery, although last Thursday's Consumer Price Index (CPI) data turned out to be higher than expectations across the board, initially triggering a wave of selling. However, Friday's Producer Price Index (PPI) data came in lower than expected, prompting crypto markets to reverse earlier losses.
Stocks also benefited from this data, with the Dow and S&P 500 indexes hitting new all-time highs.
After falling as low as $59,000 on Thursday, bitcoin is currently trading at $67,900.
The CME FedWatch tool suggests a near 87% chance that the Federal Reserve will cut the federal funds rate by 25 basis points at the next meeting in November. However, policymakers are likely to keep a close eye on future economic data until then, as it could alter the course of the planned rate cuts.
