Crypto Prices Rise as August PPI Data Shows Unexpected Decline

Soft U.S. inflation data for August is leading to a temporary rise in crypto prices.

The Producer Price Index (PPI) fell 0.1% month-over-month in August, against an expected increase of 0.3%.
Year-over-year, PPI rose by 2.6%, down from 3.1% and below the forecast of 3.3%.
The core PPI also fell 0.1%, with a year-over-year rise of just 2.8%, lower than the estimated 3.5%.
Bitcoin (BTC) rose to $113,700, up more than 1% over 24 hours. Ether (ETH) and Solana (SOL) also saw gains of around 1% and 3.3%, respectively.
Traders are awaiting tomorrow's Consumer Price Index (CPI) report, critical for assessing the Federal Reserve's interest rate decision.

Easier monetary policy generally supports risk assets, including crypto.
Recent weak economic reports suggest potential central bank rate cuts.
Despite positive news, Bitcoin's price has shown volatility, pulling back after initial rises.
Expectations for a 25 basis point rate cut next week have increased, with odds for a 50 basis point cut now at 10%.