This week, Bitcoin (BTC) and other cryptocurrencies were closely monitoring critical economic data from the US. The US Consumer Price Index (CPI) data was released first, followed by the Producer Price Index (PPI). Higher-than-expected US PPI figures shook global markets, including cryptocurrencies, overnight. PPI data show that tariff-related cost pressures are being passed on to consumers faster than expected, increasing the risk of inflation. While the data negatively impacted crypto markets, Singapore-based analytics platform QCP Capital said that the US PPI figures caused a brief pullback in cryptocurrencies, but Bitcoin's uptrend remained intact. QCP analysts said the better-than-expected PPI data shook the crypto market, strengthened the US dollar, and pushed up Treasury yields. US stocks held firm. Analysts also noted that the CPI data released earlier this week supported expectations of a larger Fed rate cut in September, but the higher PPI data largely eliminated the possibility of a 50 basis point cut, lowering the probability of a 25 basis point cut to 90%. The probability of leaving interest rates unchanged has begun to be priced in at 9.4%. Analysts recently said that the PPI data, which came in above expectations, strengthened the dollar and yields, leading to a brief pullback in cryptocurrencies, but the upward trend in Bitcoin and cryptocurrencies that began in April continues robustly, supported by increasing institutional adoption. *This is not investment advice. Continue Reading: Is Bitcoin (BTC) and Altcoins Bullish After the PPI-Driven Drop? QCP Capital Explains!
