Bitcoin has seen a 4% recovery, pushing its price above $61,500 USD. This rebound comes despite new macroeconomic inflation data from the U.S.

Bitcoin Resists Inflationary Pressures

On October 11, Bitcoin opened trading on Wall Street at $61,500 USD, as cryptocurrencies shrugged off new U.S. inflation data. The Producer Price Index (PPI) surpassed expectations, reaching 1.8% compared to the forecasted 1.6%.

An official press release from the Bureau of Labor Statistics (BLS) stated that "over the last 12 months, prices excluding food, energy, and trade services increased by 3.2%." This development adds to inflationary pressures, posing increasing challenges for the Federal Reserve.

Fed's Interest Rate Decision Questioned

In response to the inflation data, some commentators have questioned whether the recent 0.5% rate cut was necessary. The Kobeissi Letter on X noted that both PPI and the Consumer Price Index (CPI) show that inflation is on the rise again.

“Fed did not need a 50 basis point rate cut,” wrote The Kobeissi Letter. Despite this, cryptocurrencies and other risk assets started to diverge – stocks rose, while bitcoin and altcoins faced selling pressure.

Expectations for Fed’s Next Move

After the PPI release, market uncertainty remains regarding the next move by the Federal Reserve. The FedWatch Tool from CME Group predicts an 84% chance of a minor 0.25% rate cut in November, with a 17% chance that rates will remain unchanged.

Key Bitcoin Price Levels

Analysts are closely watching how Bitcoin’s price will develop. Analyst Justin Bennett noted that Bitcoin regained the $60,600 to $60,800 USD level after recovering from a low of $58,860 USD. Bennett expects that if this momentum continues, Bitcoin could test the $62,000 USD level.

Trader Roman observed a notable divergence and is hopeful for another rise to $65,000 USD. Meanwhile, another analyst, Anbessa, identified two key levels to watch: $63.9k USD as a signal for further bullish momentum and $60.2k USD for a potential additional dip.

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