Bitcoin price tracks $68K as 'chicken' crypto market shrugs off US PPI

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Bitcoin and altcoins are unmoved by a significant inflation slowdown, as shown in the latest U.S. macro data.

Bitcoin price tracks $68K as 'chicken' crypto market shrugs off US PPI

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Bitcoin (BTC) avoided a fresh attack on $69,000 at the June 13 Wall Street open as markets played “chicken” with the latest United States inflation data.

BTC/USD 1-hour chart. Source: TradingView

U.S. PPI beat does little to inspire crypto bulls

Data from Cointelegraph Markets Pro and TradingView followed Bitcoin as it spiked to $68,433 on Bitstamp before returning lower.

The brief move came as the U.S. Producer Price Index (PPI) print for May came in lower than expectations across the board, showing inflation to be losing steam.

U.S. PPI 1-month % change. Source: Bureau of Labor Statistics

While technically a positive sign for risk assets and crypto, the latter offered a cool reaction to PPI compared to the data releases from the day prior.

Jobless claims, which beat forecasts, likewise failed to rally sentiment.

Source: Tedtalksmacro

Reacting, popular trader Skew suggested that the mood may yet change dramatically during the U.S. session.

“Market is confused & chicken here imo,” he told followers on X (formerly Twitter).

“Next few hours will be interesting.”

Skew also noted that the U.S. dollar, while falling on the back of PPI, did not experience significant volatility.

The U.S. dollar index (DXY) was at 104.79 at the time of writing, having recovered from a brief dip to 104.64.

U.S. dollar index (DXY) 1-hour chart. Source: TradingView

“It’s what we usually see,” fellow trader Dann Crypto Trades continued in part of his own X coverage of the BTC price response.

“Let’s see if it can continue from here. Stocks pretty strong.”

Trading desk maintains “structurally bullish” crypto angle

Considering the longer-term outlook for both Bitcoin and Ether (ETH), trading firm QCP Capital joined those who were more optimistic about U.S. financial policy for the remainder of 2024.

Related: Why is Bitcoin price stuck?

“FED’s dot plot remains ambiguous, making it challenging to predict whether officials prefer one or two rate cuts this year,” it wrote in its latest update to Telegram channel subscribers.

“However, we anticipate a rate cut in September, with the FED likely adopting a wait-and-see approach for subsequent meetings in November and December.”

Fed target rate probabilities for September meeting. Source: CME Group

QCP added that the presumed approval of spot Ether exchange-traded funds (ETFs) would provide a bullish background to macro shifts in the form of Fed interest rate cuts.

“We maintain a structurally bullish outlook for the remainder of the year, driven by the anticipated ETH ETF S-1 approval and potential rate cuts in September and year-end,” it confirmed.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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