Core

2024

Jerome Powell

Chair

<img decoding="async" width="1536" height="864" src="https://coingape.com/wp-content/uploads/2024/03/Crypto-Market-Cap-Levels-1536x864-2.jpg" class="attachment-full size-full wp-post-image" alt="Crypto market US PPI Inflation" style="float:right; margin:0 0 10px 10px;" srcset="https://coingape.com/wp-content/uploads/2024/03/Crypto-Market-Cap-Levels-1536x864-2.jpg 1536w, https://coingape.com/wp-content/uploads/2024/03/Crypto-Market-Cap-Levels-1536x864-2-300x169.jpg 300w, https://coingape.com/wp-content/uploads/2024/03/Crypto-Market-Cap-Levels-1536x864-2-1224x689.jpg 1224w, https://coingape.com/wp-content/uploads/2024/03/Crypto-Market-Cap-Levels-1536x864-2-768x432.jpg 768w, https://coingape.com/wp-content/uploads/2024/03/Crypto-Market-Cap-Levels-1536x864-2-678x381.jpg 678w, https://coingape.com/wp-content/uploads/2024/03/Crypto-Market-Cap-Levels-1536x864-2-150x84.jpg 150w" sizes="(max-width: 1536px) 100vw, 1536px">
The latest U.S. Producer Price Index (PPI) index data showed that the inflation has cooled to -0.2% in May, while the market was expecting a surge of 0.1%. Notably, the cooling inflation data has fueled optimism in the market over a potential dovish stance by the Federal Reserve. 
In addition, the latest U.S. CPI data also boosted market confidence. Despite that, the latest remark from Fed Chair Jerome Powell appears to dampen hope, as he signals only one rate cut in 2024 as the inflation still remains at the top of their 2% target range. 
<h2 id="us-ppi-inflation-drops-to-lowest-level-since-october-2023">US PPI Inflation Drops To Lowest Level Since October 2023</h2> 
The latest data by the Bureau of Labor Statistics showed that the <a href="https://coingape.com/bitcoin-holds-61k-mark-despite-gloomy-us-ppi-data/" target="_blank" rel="noopener">U.S. PPI inflation</a> fell 0.2% in May after soaring 0.5% in April. Notably, this marks the largest drop since October last year. On an unadjusted basis, the inflation cooled to 2.2% in May as compared to 2.3% in the prior month. Besides, the market was expecting the annual <a rel="nofollow" href="https://www.bls.gov/news.release/ppi.nr0.htm" target="_blank">PPI inflation</a> to come in at 2.5%. 
On the other hand, the Core PPI, excluding the food, energy, and trade services, remains unchanged from the prior month. In addition, the core PPI annual rate in May eased to 2.3% as compared to the 2.4% figure noted in April. The market was also expecting the Core PPI annual rate to come in at 2.4%. 
Although the latest U.S. PPI inflation data signals that the <a href="https://coingape.com/education/what-is-inflation-what-causes-it-and-its-effects-4-examples-of-inflation/" target="_blank" rel="noopener">inflation</a> is cooling, it appears that the market is taking a cautious approach as it still stays above the Fed’s target range. Despite the Fed’s dot plot still indicating two rate cuts this year, the recent Fed Chair’s comment appeared to have weighed on the investors’ sentiment. 
Also Read: <a href="https://coingape.com/spot-bitcoin-etfs-saw-100m-inflow-reversal-but-risks-still-looms/" target="_blank" rel="noopener">Spot Bitcoin ETFs Saw $100M Inflow Reversal But Risks Still Looms</a> 
<h2 id="what-s-next-for-bitcoin-price">What’s Next For Bitcoin Price?</h2> 
Bitcoin has noted a strong recovery following yesterday’s cooling <a href="https://coingape.com/bitcoin-price-advances-us-cpi-inflation-cools/" target="_blank" rel="noopener">U.S. CPI inflation</a> data. However, despite today’s data signaling that the U.S. PPI inflation has also cooled, the market faces heightened volatility. 
According to market experts, investors are seeking further clarity before putting their bets into the sector. In addition, the recent hawkish signal from the <a href="https://coingape.com/us-fed-meeting-announcements-jerome-powell-speech-highlights/" target="_blank" rel="noopener">Fed Chair</a> has further weighed on the market sentiment. Notably, following the PPI inflation data, the U.S. 10-year Bond Yield decreased by 0.49% to 4.273, while U.S. Dollar Index Futures fell 0.15% to $104.475. 
However, despite the cooling PPI inflation figures, <a href="https://coingape.com/price/bitcoin/" target="_blank" rel="noopener">Bitcoin price</a> retreated 2.53% to $67,750.82. The altcoins, including Ethereum, Solana, XRP, and Dogecoin, also followed suit. Amid the drop in the major crypto prices, the global crypto market fell 2.77% to $2.45 trillion. 
Meanwhile, despite the recent decline, the market experts anticipate a potential rally in the Bitcoin price. Despite the hawkish remarks, the cooling inflation data signals that the Fed may soon take a dovish stance, which could propel a rally in the broader crypto market, let alone Bitcoin price. 
Also Read: 
<ul> 
 <li><a href="https://coingape.com/microstrategy-announces-500m-notes-sale-buy-more-bitcoin/" target="_blank" rel="noopener">MicroStrategy Announces $500M Notes Sale To Buy More Bitcoin</a></li> 
 <li><a href="https://coingape.com/australia-largest-bank-offers-monochrome-bitcoin-etf-to-17m-customers/" target="_blank" rel="noopener">Australia’s Largest Bank Offers Monochrome Bitcoin ETF To 17M Customers</a></li> 
 <li><a href="https://coingape.com/mica-boosts-eur-stablecoin-utilization-will-cast-shadow-usd-backed-coins/" target="_blank" rel="noopener">MiCA Boosts EUR-Stablecoin Utilization, Will It Cast A Shadow On USD-Backed Coins?</a></li> 
</ul> 
The post <a href="https://coingape.com/crypto-market-face-volatility-after-major-drop-us-ppi-inflation-what-next/">Breaking: US PPI Inflation Eases to 2.2%, Bitcoin Price Rally Imminent?</a> appeared first on <a href="https://coingape.com">CoinGape</a>.

Breaking: US PPI Inflation Eases to 2.2%, Bitcoin Price Rally Imminent?

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