The Producer Price Index (PPI) for final demand climbed 0.9% from June, marking the largest monthly gain since early 2022. On a yearly basis, wholesale prices advanced 3.3% – the fastest pace in over two years.
Core PPI, which excludes food, energy, and trade services, also saw a strong 0.6% monthly increase and was up 2.8% year-over-year, suggesting underlying price pressures remain firm.
In traditional markets, hotter-than-expected PPI data often fuels speculation that the Federal Reserve could delay interest rate cuts or even keep rates elevated for longer. Higher borrowing costs tend to weigh on risk assets, including cryptocurrencies, as liquidity tightens.
For Bitcoin and Ethereum, the near-term reaction could depend on whether investors interpret the data as a sign of persistent inflation – which might pressure markets – or as evidence of economic resilience, which could keep risk appetite intact.
To conclude – in the short-term a wave of liquidations and a correction is expected.
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