Bitcoin Price Drops from $58,000 as US PPI and Jobless Claims Beat Expectations

Bitcoin (BTC) was volatile on Wall Street on September 12, as recent U.S. macroeconomic data showed mixed signals on inflation.

Fed Rate Cut Bet Remains Despite Mixed Data

According to data from Cointelegraph Markets Pro and TradingView, BTC/USD is down below $58,000, but is still showing slight gains on the day.

The U.S. producer price index (PPI) in August rose 0.3% month-on-month, slightly beating expectations, but came in at 2.4% for the year, below expectations.

“We saw a similar theme in CPI inflation, where annual and monthly inflation paint different pictures,” trading resource The Kobeissi Letter wrote as part of an ongoing response to X.

But more attention was focused on the unemployment rate, which came in at 230,750, beating expectations of 227,000.

Kobeisi claimed that the Federal Reserve will choose to cut interest rates to a low 0.25% at its meeting on September 18.

Data from CME Group’s FedWatch tool agrees, showing the market pricing in an 85% chance of a 0.25% cut.

Then, trader, analyst and entrepreneur Michael van de Poppe pointed out that the European Central Bank (ECB) cut rates ahead of the Federal Reserve.

“The monthly data points were worse than expected, but overall the PPI was lower than expected,” he summarized, telling his X followers, “There are good things lined up for Bitcoin.”

Bitcoin traders remain cautious on BTC price optimism

Bitcoin itself was looking for direction after erratic BTC price movements during the previous day’s US trading session.

relevant: Is Cryptocurrency Entering a Bear Market? — 5 Things to Know About Bitcoin This Week

The initial downtrend soon reversed, with BTC/USD also following the tech rally to close above $57,300.

Discussing the market composition of spot and derivatives, popular trader Skew said that it is unlikely that the upward resistance level of around $60,000 will disappear.

“The market doesn’t seem all that bullish here, but it makes sense given the prominent resistance and supply above,” he explained in part of his latest analysis post on X.

“It’s going to take a lot more effort to convince market buyers to come here.”

According to data from monitoring resource CoinGlass, selling liquidity near $58,500 has intensified, keeping the spot price anchored below it.

Meanwhile, multi-timeframe Bitcoin statistician Willie Woo points to more uncertain market conditions ahead. Woo cited his proprietary indicator signals.

This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.