Crypto enthusiasts witnessed a new all-time high for Bitcoin 
$79,109 just hours ago. Meanwhile, Ethereum 
$2,488 remains robust, sustaining buyer interest over $4,700, even as Bitcoin exhibits a pullback. As ADA Coin approaches the $1 threshold, Binance Coin (BNB) is reaching new heights. The anticipated days for altcoins have arrived, raising the question: What about the US Producer Price Index (PPI) data?
Significance of US PPI Data
The US PPI data, closely related to the Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures (PCE) index, was released recently. In an environment where altcoins are attracting capital, the significance of these data points grows. This week’s Consumer Price Index (CPI) figures were relatively favorable, supporting the case for a potential interest rate cut in September.
For the month of July, the expectations and the announced figures for producer inflation are as follows:
- US PPI Announced: 3.3% (Expectation: 2.5%, Previous: 2.3%)
- US Core PPI Announced: 3.7% (Expectation: 3%, Previous: 2.6%)
The released figures acted almost like an emergency sell signal, significantly exceeding expectations. Although the CPI did not reflect significant tariff impacts, the PPI saw a substantial increase. This scenario could fortify the hawkish stance of Federal Reserve members who are reluctant to endorse a rate cut in September, thus introducing notable risk.
Bitcoin has retreated to $120,000, and Ethereum has slid to the $4,650 area, with the possibility of continued sales as trading opens.
