Bitcoin (BTC), despite slipping from the weekly lows, recovered on Thursday following a slight cooling in US Producer Price Index.
Important points
- Bitcoin’s price avoids further fall as US data on the PPI boosts US equity prices.
- Cleveland Fed’s president remains optimistic about interest rate policy.
- Bitcoin long-liquidations have $61,000 as a crucial level.
US Inflation trend continues cooler with July’s PPI
TradingView’s data shows that the BTC/USD pair was trading at $63,900, up 0.5%. There is little volatility.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
According to data provided by the Bureau of Labor Statistics, July’s US Producer Price Index was 0.2% higher than expected, but year-onyear, it increased from 4.7%.
“In July, a 0.2-percent increase in the index for final demand services and a 2.2-percent advance in prices for final demand construction offset a 0.7-percent decrease in the index for final demand goods,” BLS release said.
“Falling gasoline and energy prices provided the biggest relief,” The Econoday Analyst highlighted.
Change in the US PPI for one month. Source: BLS
US stocks rose at Wall Street’s opening as PPI cooled down market expectations of interest rate hikes by Federal Reserve policymakers. The S&P 500 index and tech-heavy Nasdaq Composite index were up 0.87% and 0.94%, respectively, at the time of writing.
CME Group FedWatch Tool There were 65.6% of odds that the Federal Open Market Committee will hold the rates where they are at 3.50-3.75% at its September meeting. As expected, Wednesday’s Consumer Price Index (CPI), July numbers were also in line with the expectations. This has already resulted in an increase to the outlook for a rate-pause.
Fed Target-Rate Probability Comparison for the September FOMC Meeting (screenshot). Source: CME Group
Following their biggest split over the interest-rate path Fed officials maintained a cautious tone in the month of July since 1970. Beth Hammack, president of the Cleveland Federal Reserve Bank, spoke at a Dayton Area Chamber of Commerce event in Kettering Ohio. She questioned if even recent cooler data prints It would take a lot of money to get inflation to the Fed’s target of 2%.
“Maybe we’d get there, but if it takes another three to four years to get there, is that OK? Is that enough?” “She said” quoted Bloomberg.
Hammock is one of the three elected officials who voted in favor of an increase of 0.25 percent in rates in July.
Related: Bitcoin speculators keep BTC price ‘pinned’ below $68.7K: Glassnode
Bitcoin faces long position liquidations at $61,000
BTC prices are still moving within a small range. This has focused the attention of market participants on the extremes.
Rafael SchultzeKraft, the cofounder of Glassnode’s onchain analytics platform, said that $61,000 might become a “flashpoint” due to large liquidations of long positions that could occur should price reach that level.
“Long liquidation risk has built up around $61K in the past weeks. If we get there, I’d expect forced selling to add momentum to the downside,” He wrote In a post on Tuesday X.
Previously, Cointelegraph reported On $63,000, BTC is now another important price level.
Bitcoin futures liquidation heatmap. Source: Rafael Schultze-Kraft on X.com
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: cointelegraph.com
