Bitcoin Surpasses $114,000 as PPI Drop Fuels Fed Rate Cut Bets

Bitcoin surpassed $114,000 this week, driven by a decline in the US Producer Price Index (PPI), which fell to approximately 2.6% year-on-year. This drop raised expectations for potential interest rate cuts by the Federal Reserve.

Key Points

The PPI's decrease was one of the first since March 2024, influencing market optimism.
Bitcoin approached $113,850 before trading above $114,000; Ethereum exceeded $4,400.
Institutional inflows and stablecoin liquidity contributed to rising prices.
Support levels are identified at $112,500-$113,000 and resistance at $115,000-$115,500.
Market technicians note that breaking support could lead to a pullback, while clearing resistance may push prices higher.
On-chain indicators suggest an increase in transfers to exchanges, indicating potential profit-taking.

Future Considerations

Upcoming data on consumer inflation and job figures may affect Fed policy and market movements.
Some traders anticipate rate cuts as early as September, though this is not guaranteed.
Investors should monitor flows into BTC and ETH from stablecoins and watch for profit-taking near key technical levels.