Recent US economic data releases, particularly the Producer Price Index (PPI), caused ripples in the cryptocurrency market. The PPI figures revealed a faster-than-expected transfer of tariff-related costs to consumers, raising concerns about inflation. 📈 While this news negatively impacted crypto prices, Singapore-based analytics platform QCP Capital has offered insights on Bitcoin’s performance during the volatility. QCP analysts reported that although a brief pullback occurred for cryptocurrencies following the PPI rise, the upward trend in Bitcoin and the broader cryptocurrency market continues to be supported by increasing institutional adoption. 📈
The PPI data also impacted the US dollar and Treasury yields, strengthening their value. Despite earlier expectations of a larger Fed rate cut later this year based on CPI data, the higher PPI figures lessened the likelihood of a 50 basis point decrease and increased the probability of a smaller 25 basis point adjustment. 📉 This suggests that market players are adjusting their outlook for interest rates in line with the updated economic landscape.
QCP Capital’s analysis highlights the strong correlation between Bitcoin’s performance and institutional investment, suggesting that this factor is driving the market upward despite short-term fluctuations.