Lately, Wholesale surged more than expected in January, catching many off guard and raising concerns about inflation staying strong. The Producer Price Index (PPI) jumped 0.4%, beating predictions of 0.3%, while year-over-year prices shot up by 3.5%, higher than anticipated! This spike is fueling worries that inflation pressures could stick around longer.
The gloomy data, following the unexpected rise in US CPI inflation, has added more pressure on crypto traders. However, in a surprising turn, Bitcoin’s price has surged, briefly crossing the $96K mark. While the latest US PPI inflation data has raised fears of a Bitcoin price crash. However, it seems investors are ignoring these concerns, as shown by Bitcoin’s recent surge.
Interestingly, this also shows that Bitcoin is becoming a safe haven for investors, offering a shield against inflation and global macroeconomic concerns.
Also, the higher-than-expected figures give the Federal Reserve more space to stick to its hawkish rate plans.
Fed Chair Jerome Powell has said the Fed will consider the economy before deciding on rate cuts. However, this data makes it more likely that the Fed won’t cut rates before mid-year. The CME FedWatch Tool suggests the Fed will keep rates unchanged in March.
The broader digital asset market also rallied today with the global crypto market cap rising 2.1% to $3.18 trillion. Top altcoins like Ethereum, XRP, and Cardano followed Bitcoin’s lead, gaining over 2% after the US PPI data. Despite the quick rise, market watchers are closely monitoring Bitcoin’s performance.
