Bitcoin surged past $65,000 and Ethereum hit $1,900, marking significant price gains after the latest U.S. Producer Price Index (PPI) data showed a surprising decline. Producer prices fell 0.3% in June, bringing the annual inflation rate to 5.5%, notably below economists' expectations. This softer inflation reading suggests potential easing of Federal Reserve hawkishness, fueling risk-on sentiment across markets, including crypto. Investors will now closely watch upcoming CPI data and the Fed's next policy meeting for further clues on interest rate trajectories.
Softer U.S. inflation data directly impacts the Federal Reserve's monetary policy outlook, influencing liquidity and risk appetite. A less hawkish Fed could reduce the cost of capital, making risk assets like Bitcoin and Ethereum more attractive to institutional investors.
This event highlights crypto's sensitivity to macro-economic indicators and central bank policy expectations. Market participants are actively pricing in a dovish Fed pivot, which will likely sustain upward pressure on digital asset valuations.
The post Bitcoin Price Tops $65,000 After Softer U.S. PPI Data appeared first on Coinpedia Fintech News Bitcoin climbed above $65,000 and Ethereum reached $1,900 for the first time in 43 days after U.S. producer prices (PPI) fell 0.3% in June, bringing annual producer inflation to 5.5%, below expect