Bitcoin (BTC) has surged back above the $60,000 threshold, trading at $61,100 after a 2.9% increase over the past 24 hours. This uptick in Bitcoin’s price coincides with a rally in global stock markets, driven by lower-than-expected producer inflation data released on Tuesday.
The Nikkei 225, Japan’s benchmark stock index, led the positive trend by recovering fully from its August 5 decline, ending the day up 3.45%. In the United States, the S&P 500 and Nasdaq Composite Index also posted gains, rising 0.8% and 1.4%, respectively.
This market uplift follows a lower-than-anticipated Producer Price Index (PPI) for July, which saw an increase of 0.1%, falling short of the 0.2% forecast. Over the year ending in July, the PPI rose by 2.2%, beneath the projected 2.3%.
Despite the favorable market conditions, Bitcoin’s reaction has been relatively subdued. Trader Daan Crypto Trades pointed to the upcoming Consumer Price Index (CPI) release on August 14 as a potential trigger for more substantial market movements. CoinGlass data reveals increased buying interest around $58,000 and selling pressure at $60,000, indicating a narrow trading range.
Looking forward, QCP Capital stressed the critical role of CPI data in shaping market trends, as investors remain wary of future rate cuts. FedWatch data suggests optimism for potential Federal Reserve rate cuts, with markets anticipating a possible 0.5% reduction in September.
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