The expected cut in the Federal Reserve's (Fed) interest rates in September could influence Bitcoin's price. Many experts have already discussed the potential consequences of this decision.
Fed Rate Cut Predictions
The Fed is expected to cut interest rates in September. Current data indicate that 91.8% of traders anticipate a 25 basis point cut, while 8.2% expect a 50 basis point cut.
Producer Price Index (PPI) Data
Among the important data considered by the Fed in decision-making, the Producer Price Index (PPI) figures were released:
- Core Producer Price Index (Monthly): -0.1% (Expected 0.3%, Previous 0.9%) - Core Producer Price Index (Annual): 2.8% (Expected 3.5%, Previous 3.7%) - Producer Price Index (Monthly): -0.1% (Expected 0.3%, Previous 0.9%) - Producer Price Index (Annual): 2.6% (Expected 3.3%, Previous 3.3%).
Bitcoin's Initial Reaction to PPI Data
Bitcoin reacted to the released PPI data. The chart of the market's initial response shows the changes in Bitcoin's price following the release of these data.
The anticipated decision by the Fed to cut interest rates may significantly impact financial markets, including the cryptocurrency market. PPI data serve as an important indicator of economic conditions and will influence the Fed's future actions.
