US Core PPI Drops to 2.4% as Inflation Cools
The latest Producer Price Index (PPI) report indicates cooling inflation in the U.S., affecting cryptocurrency markets, particularly Bitcoin.
US Inflation Update
- PPI for April increased by 2.4% year-on-year, below the 2.5% forecast and down from 2.7% previously.
- Monthly PPI decreased by 0.5%, contrasting with an expected increase of 0.2%.
- Core PPI showed a year-on-year rise of 3.1%, matching estimates but down from 3.3% in March.
- Jobless claims were reported at 229,000, aligning with expectations.
- Philadelphia Fed Manufacturing Index improved to -4, surpassing the forecast of -11.
- Retail sales rose by 0.1% month-on-month, slightly above expectations but lower than March's 1.4% increase.
Market Reaction
- Bitcoin reached local highs following CPI data release but fell back to $101,734 after profit-taking.
- Total crypto market cap exceeded $3.38 trillion prior to PPI release, driven by optimism over easing inflation.
- Bitcoin dropped 1.86% in the past 24 hours; Ethereum and XRP saw declines of 3.51% and 5.94%, respectively.
- Analysts suggest Bitcoin may be nearing a local bottom, with potential support between $68,000 and $74,000.
Investors are monitoring inflation trends closely, as ongoing declines could lead to a recovery in cryptocurrency values amid looser financial conditions.