The much-awaited US PPI data today showed that inflation has advanced 3.5% in January, marking its highest increase since February 2023. This gloomy data, after the recent hotter-than-anticipated US CPI inflation figures, has further added pressure on the crypto market traders. However, with an unexpected twist, Bitcoin price has surged crossing the brief $96K mark.
Bitcoin Rises After US PPI Release
The latest US PPI Inflation data by the Labor Department has fueled concerns over a potential Bitcoin price crash ahead. However, it appears that the investors have shrugged off the inflationary concerns, as evidenced by the recent surge in BTC.
Meanwhile, the latest data showed that the US PPI advanced 3.5% on a year-over-year basis (YoY) in January, up from 3.3% in the prior month. The inflation on a monthly basis came in at 0.4%, up from the prior month’s figure of 0.2%. Notably, the latest data exceeds Wall Street expectations.
Simultaneously, the Core PPI, which excludes the food and energy prices, came in at 3.4% as compared to December’s figure of 3.3%. On the other hand, the Core PPI on a MoM basis rises to 0.3% from 0.1% recorded in the previous month. The market was expecting the Core PPI to come in at 3.3% and 0.2%, respectively.
Bitcoin Price Soars 2% Reflecting Bullish Market Sentiment
Bitcoin price today recorded a surge of over 2% despite the gloomy data and soared past the brief $96K mark after the US PPI release. This latest advancement in the crypto’s price indicates that the investors have shrugged off the inflationary concerns while focusing on the long-term potential of the coin. Besides, it also indicates that BTC has emerged as a safer haven amid inflationary and global macroeconomic concerns.
Meanwhile, BTC price reacted immediately and slipped after the US CPI exceeded Wall Street expectations yesterday. Notably, these hotter-than-expected figures are likely to give more space to the Federal Reserve to move with their hawkish rate cut plans.
Notably, Fed Chair Jerome Powell has reiterated his stance on interest rate cuts, saying that the central bank would consider the economic condition before coming to a decision. Having said that, these recent sets of data have cemented bets over no Fed rate cut before the first half of the year. According to the CME FedWatch Tool, the US central bank is going to maintain the policy rates at their upcoming gathering in March.
Crypto Market Rallies Amid Cautious Stance
The broader digital assets space also rallied today, with the global crypto market cap rising 2.1% to $3.18 trillion. Top altcoins like Ethereum, XRP, Cardano, and others, also followed Bitcoin price movements, witnessing gains of over 2% following the US PPI release.
However, despite the immediate bullish response, market watchers are keeping close track of the flagship crypto’s performance. Recently, top analysts highlighted key support levels for BTC price, which the crypto should break to continue its upward run. Besides, an expert also predicted that a close below the $92K level could trigger a massive selloff in the market, potentially dragging down the Bitcoin price to the $70,000 level.
Meanwhile, the US 10-year Bond Yield also slipped 1.2% to 4.577 while the US Dollar Index fell 0.12% to $107.690.
The post Breaking: Bitcoin Price Soars Despite US PPI Exceeds Wall Street Estimates appeared first on CoinGape.
