Yesterday (7/12) all three major U.S. stock indexes rose, with the Dow Jones (DOW) closing above 40,000 points for the second time in history. Investors are digesting the impact of inflation data and successive financial reports. The balance of Bitcoin labeled as the German government's wallet has returned to zero. The selling pressure that investors were previously worried about seems to have officially come to an end. Bitcoin has been consolidating in a range recently.
PPI increased 0.2% monthly, investors still betting on interest rate cut in September
According to CNBC, the U.S. Bureau of Labor Statistics reported a monthly increase of 0.2% in the producer price index (PPI) in June, up 2.6% from the same period last year, slightly higher than economists' expectations.
This was contrary to the Consumer Price Index (CPI) released the day before. CPI released on Thursday showed headline inflation falling month-on-month and now rising 3% annually.
However, the release of PPI data does not seem to have affected investors' expectations that the Federal Reserve will start cutting interest rates in September. According to CME Group's FedWatch tool, traders expect a 94.1% chance of a rate cut of more than one point in September. The personal consumption expenditures price index (PCE), the Fed's most important inflation indicator, will be released on July 26.
German government wallet Bitcoin has been reset to zero
According to Arkham data, the Bitcoin wallet labeled as belonging to the German government has been reset to zero, and the 50,000 Bitcoins previously seized from the movie piracy website Movie2K have been gradually transferred to different exchanges and market makers.
German government wallets on Friday moved the final batch of Bitcoin to wallets with Flow Traders and 139Po (possibly institutional depository and over-the-counter trading services) whose wallet balances have reached zero. The selling pressure that investors were worried about before seems to have officially come to an end.
The sell-off is over, is Bitcoin expected to bottom out?
JPMorgan Chase and Bitfinex have recently issued reports stating that with the end of liquidation activities and selling by short-term holders, the market is close to bottoming out and is expected to rebound in August.
(JPMorgan Chase: Bitcoin liquidation activities end this month, and the market will rebound in August)
Bitcoin fell to $53,485 last week and seems to be showing signs of stabilizing in recent days. The pressure above will first look at the integer level of 60,000.
This article Investors bet on September rate cut, end of German government selling pressure? BTC range consolidation first appeared on Chain News ABMedia.
