Benzinga - April Producer Price Inflation (PPI) increased by 0.5% month-over-month, causing cryptocurrency markets to slide on Tuesday.
What Happened: Federal Reserve Chair Jerome Powell commented on the data, saying "I wouldn't call it hot. I would call it sort of mixed." According to Nick Timiraos, Chief economics correspondent of the Wall Street Journal, the impact on the Personal Consumption Expenditures (PCE) from the Producer Price Index (PPI) is likely offset, as lower airfares and healthcare costs are expected to balance out the increased costs in the financial services subcomponent.
Cryptocurrencies took a hit, with some AI-related cryptocurrencies like Worldcoin (CRYPTO: WLD) and Render (CRYPTO: RNDR), as well as meme coins like Dogwifhat (CRYPTO: WIF) being the top losers.
| Cryptocurrency | Price | Gains +/- |
| Bitcoin (CRYPTO: BTC) | $61,432.98 | -2.1% |
| Ethereum (CRYPTO: ETH) | $2,892.34 | -2.0% |
| Solana (CRYPTO: SOL) | $142.92 | -3.1% |
| Dogecoin (CRYPTO: DOGE) | $0.1466 | -3.7% |
Also Read: Bitcoin, Ethereum, Dogecoin, Pumped And Retraced After The Last Inflation Data Release — What To Expect This Month?
Why It Matters: The crypto community was undecided on what the new data means for price action going forward.
Crypto trader ShardiB2 reaffirmed Powell's statement, seeing "Higher for longer," with reference to the Fed’s interest rate policy.
Crypto Kaduna sees the PPI numbers forcing the Federal Reserve into a dovish position on interest rates, commenting, "If he's hawkish, USD/JPY will rally, and Japan might be forced to sell U.S. treasuries. The U.S. doesn't want that to happen."
Crypto trader and analyst El Crypto Prof highlighted Bitcoin's weekly chart, suggesting to either “sell everything here” or analyze Bitcoin’s historic price action, presumably in anticipation of further upside.
Crypto technical chart analyst Ali Martinez anticipates a price rebound for Bitcoin.
The TD Sequential presents a buy signal on the #Bitcoin hourly chart, anticipating a price rebound! pic.twitter.com/BwSwXn2mgU— Ali (@ali_charts) May 14, 2024
What’s Next: After the PPI data, attention turns towards Wednesday’s upcoming CPI data release, expected to come in at 3.4%, below the prior month's 3.5%.
The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
Read Next: Bitcoin Up 3%: What Will Inflation Data And Powell Speech Bring This Week?
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