Bitcoin crept higher after U.S. producer price data suggested price pressures on manufacturers eased, boosting expectations that the Federal Reserve may cut interest rates next week.
In the hour after the Bureau of Labor Statistics released the report, Bitcoin rose about 0.5% and traded above $114,000. That leaves BTC roughly 2.3% higher than a week ago but still about 5.7% below its level 30 days earlier. Ethereum also ticked up, gaining around 0.2% to about $4,382.10, according to Coingecko.
The report showed the producer price index fell 0.1% in August, a sign that goods inflation for producers is cooling. The BLS also reported that core PPI — which excludes food, energy and trade services — rose 0.3% month-over-month, its fastest pace since March and bringing the year-over-year core rate to 2.8%.
Market sentiment is shifting alongside the data. Users on Myriad, the prediction market tied to Decrypt’s parent company, now place a 72% probability that Bitcoin will remain above $105,000 through September, a notable move away from last week’s pessimism. The Crypto Fear & Greed Index, which read 70 (greed) last month, has cooled to a neutral 49.
Traders are watching one more big release that could swing crypto: the consumer price index due tomorrow. As Unity Wallet COO James Toledano noted, lower-than-expected CPI often boosts risk assets while hotter data can trigger pullbacks — reflecting how crypto mirrors traditional risk-on/risk-off flows.
Odds of a Fed cut are also shaping positioning: the CME FedWatch tool shows about 88% of investors expect a 25 basis point cut at next week’s FOMC meeting, while 12% anticipate a 50 basis point move. With nonfarm payrolls, unemployment data and the FOMC decision all imminent, volatility may increase.
Risk note: Macro-driven market moves can be swift and unpredictable; this article is informational and not financial advice.
Source: Decrypt. Read the original coverage for full details.
