This week, Bitcoin and other cryptocurrencies closely monitored critical economic data from the US. The US Consumer Price Index (CPI) data was released first, followed by the Producer Price Index (PPI).
Impact of PPI Data on Cryptocurrencies
Higher-than-expected PPI data shook global markets, including cryptocurrencies. Tariff-related cost pressures are being passed on to consumers faster than expected, increasing the risk of inflation.
Fed Rate Cut Prospects
QCP Capital analysts noted that PPI data caused a brief pullback in cryptocurrencies, but Bitcoin's uptrend remained intact. Analysts also observed that the PPI data largely reduced the probability of a significant cut in Fed rates.
Long-Term Trends in the Crypto Market
Despite the short-term volatility, analysts emphasize that the upward trend in Bitcoin and cryptocurrencies that began in April continues to be strong, driven by growing institutional demand.
Thus, current economic data from the US significantly affects cryptocurrency markets; however, long-term expectations show that Bitcoin remains on an upward trajectory.
