The cryptocurrency market experienced a 2% drop following unexpected producer price index (PPI) data from the U.S. and remarks from Treasury Secretary Scott Bessent.
Analysis of PPI Data Impact on Crypto Market
The Producer Price Index (PPI) for July rose by 0.9%, significantly exceeding analyst expectations. This raised concerns among investors regarding the Federal Reserve's interest rate changes in September. Consequently, Bitcoin, Ethereum, and XRP suffered price declines, with Bitcoin falling by 2.4%, Ethereum down by 1.8%, and XRP dropping by 3.7%.
Shifts in U.S. Treasury Secretary's Position
Treasury Secretary Scott Bessent initially declined to pursue the purchase of Bitcoin for the strategic reserve but later reversed his stance. He indicated that the Treasury might consider acquiring Bitcoin to expand the reserve established by President Trump, using forfeited Bitcoin as a foundation.
Bullish Signals Persist Amid Pullback
Despite the overall downturn, a bullish sentiment remains. Bitcoin ETFs reported significant inflows of $230.8 million. Bitcoin continues to show a bullish trend, remaining above both the 50-day and 200-day simple moving averages, while Ethereum also exhibits signs of sustained growth.
The cryptocurrency market continues to face pressure due to unstable economic conditions and risky comments from authorities. However, the bullish trends and interest from investors suggest a potential recovery.
