US Producer Price Index (PPI) data came in softer than expected, registering a 5.5% increase in June. This immediately reduced the market's perceived odds of a Federal Reserve rate hike, now standing at just 12.3%. In response, Bitcoin surged, reclaiming the key $65,000 level, and Ethereum climbed above $1,900. This suggests that cooling inflation data continues to be a significant catalyst for crypto asset prices. Investors should monitor upcoming CPI data and the Fed's commentary for sustained market direction.
Softer PPI data directly impacts the Federal Reserve's monetary policy outlook, reducing the likelihood of further rate hikes. This creates a more favorable liquidity environment for risk assets like Bitcoin and Ethereum, signaling potential for continued upside momentum as interest rate pressure eases.
The market remains highly sensitive to inflation data, with every soft print immediately translating into risk-on sentiment. This structure implies that macroeconomic factors, particularly Fed policy expectations, are the primary drivers of crypto price action. Continued disinflation will likely fuel further upside.
June PPI inflation fell to 5.5%, cutting Fed hike odds to 12.3% as Bitcoin reclaimed $65,000 and Ethereum topped $1,900. The post US PPI Lands Soft, Fed Rate Hike Odds Lower as Bitcoin Price Reclaims $65,000 appeared first on BeInCrypto.