Crypto Prices Decline Following U.S. Producer Price Index Surge
Inflation concerns in the U.S. affected risk assets, including cryptocurrencies, causing sharp declines.
- The July Producer Price Index (PPI) rose 0.9%, exceeding estimates of 0.2% and last month’s 0.0%.
- Year-over-year PPI increased by 3.3%, surpassing forecasts of 2.5% and June's 2.4%.
- Core PPI also surged by 0.9%, against expectations of 0.2%.
- Core Consumer Price Index (CPI) year-over-year rose to 3.7%, compared to an expected 2.9%.
- Bitcoin fell below $119,000 from a record high above $124,000; Ether decreased nearly 4% to $4,550.
- Initial jobless claims for the week ending August 9 were at 224,000, slightly below the expected 228,000.
- Continuing claims remained at 1.95 million.
- Market projections indicate a reduced chance for a September rate cut, now at 96% according to CME FedWatch.
- U.S. stock index futures dropped 0.5%, the dollar strengthened, and the 10-year Treasury yield rose to 4.25%.