"Bitcoin has recovered to around 114,000 USD, thanks to improved sentiment after U.S. PPI came in at -0.1% m/m (both headline and core), contrary to the +0.3% forecast and below the prior +0.7%. This data shows that price pressures at the production stage are cooling, pulling real yields and the USD lower. This is an environment that is typically more friendly to risk assets, including Bitcoin."
"In the short term, the upcoming CPI is the decisive catalyst. A "soft" scenario (current consensus: Core 0.3% m/m, headline 0.3% m/m, y/y 2.9%) will reinforce the easing narrative, continue to pressure real yields and weaken the USD, thereby supporting risk appetite and opening room for BTC's rebound. Conversely, a "hot" surprise could force the market to reprice the rate path ahead of the mid-September FOMC, increasing volatility and making profit-taking risks more significant."
U.S. PPI fell -0.1% m/m for both headline and core, below forecasts and prior readings, indicating cooling production-stage price pressures. Lower PPI reduced real yields and weakened the USD, supporting risk appetite and helping Bitcoin recover to about $114,000. U.S. labor indicators showed signs of slowing, increasing expectations that the Federal Reserve will soon cut rates. Upcoming CPI is the decisive catalyst: a soft print would reinforce easing, depress real yields and support BTC; a hot surprise would force rate-path repricing and raise volatility. Spot Bitcoin ETF outflows have slowed, but durable recovery requires consecutive net inflows, favorable inflation, consistent Fed messaging, stable regulation, and signs of market restructuring such as neutral funding and restrained open interest.
Read at London Business News | Londonlovesbusiness.com
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