Bitcoin (BTC) has risen toward $61,500 since the Wall Street open on October 11 as the cryptocurrency defied the new inflation curve in the United States.
Bitcoin Avoids New Dive as PPI Adds to Inflation Concerns
A new local high of $61,476 was seen on Bitstamp, according to data from Cointelegraph Markets Pro and TradingView.
The latest US macro data in the form of the Producer Price Index (PPI) exceeded expectations across the board, rising 1.8% against expectations of 1.6%.
According to an official press release from the Bureau of Labor Statistics (BLS), the index of final demand excluding food, energy and trade services rose 0.1% in September after rising 0.2% in August.
“Final demand prices excluding food, energy and trade services rose 3.2% in the 12 months ended in September.”
So PPI is joining the Consumer Price Index (CPI) in signaling increased inflationary pressures, and CPI is already causing a “nightmare” for the Fed.
Reaction, Trading Resources Kobeissi Letter used the results to argue that the Fed’s 0.5% interest rate cut last month was unnecessary.
“Both Core PPI and CPI inflation are officially on the rise again,” X wrote.
“The Fed didn’t need a 50 basis point rate cut.”
Cryptocurrencies and risk assets began to diverge this week on the back of the Federal Reserve’s move, stocks rose and Bitcoin and altcoins came under selling pressure.
The PPI index had some impact on market expectations for the Federal Reserve’s next interest rate hike in November. There was a nearly 84% chance of a smaller 0.25% cut that day, and a roughly 17% chance of rates staying at their current levels, according to CME Group’s FedWatch tool.
Traders mention key BTC price levels to keep an eye on.
Monitoring BTC price action, market observers saw the possibility of a retest of resistance at the top of the chart.
relevant: BTC Price Rises ‘Nearly’ as Bitcoin Whale Purchases 1.5 Million BTC — Analysis
“Bitcoin regains $60,600/800 overnight,” analyst Justin Bennett wrote in part of his recent X analysis, referencing the recovery from a low of $58,860.
“I never believe in an Asian session pump, but if this holds up we could have a $62,000 retest.”
Popular trader Roman was watching for a noticeable difference, hoping for a return to $65,000 next time.
Meanwhile, fellow trader Anbessa has identified two key levels above and below the spot price to watch over a short period of time.
He told his
“- A break at $60,2000 could bring us another downside (imo final volatility downturn).”
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.