US producer inflation exceeding expectations by one percentage point pushed Bitcoin to its lowest level in three weeks. BTC later recovered to the $82,000 region. Bitcoin briefly fell below $
US producer inflation exceeding expectations by one percentage point pushed Bitcoin to its lowest level in three weeks. BTC later recovered to the $82,000 region.
Bitcoin briefly fell below $80,000 after the US producer price index exceeded market expectations. BTC lost approximately 1.8% of its value during the day, reaching its lowest level since September 18th.
The producer price index for September showed an annual increase of 6.3 percent. Market expectations were at 5.3 percent. Core producer inflation also came in at 5 percent, exceeding the expected 4.4 percent.
Monthly producer price increases reportedly reached their highest level since March 2022. The data, following higher-than-expected consumer inflation figures released the previous day, increased pressure on risky assets.
High inflation is fueling concerns that the US Federal Reserve may keep interest rates high for longer or consider another hike. A high-interest rate environment can increase returns on risk-free investments while limiting demand for volatile assets like Bitcoin and technology stocks.
Although Bitcoin fell below $80,000 after the data release, it later recovered to around $82,000. Therefore, the price at the time of publication should not be considered a permanent support level break.
Some market participants using technical analysis believe the area around $78,000 could be retested. Bitcoin’s 21 and 50-week exponential moving averages are approximately at $76,144 and $78,459 respectively.
*This is not investment advice.
Continue Reading: Bitcoin’s Volatility Around $80,000: What’s the Latest Situation in the Cryptocurrency Market?
