Bitcoin jumps above $61,000 on improving inflation data
Bitcoin rose beyond $61,000 after good PPI statistics. Consumer inflation data is due today.
After plummeting to $49,000 two weeks ago, Bitcoin (BTC) topped $61,000 early Wednesday morning as traders began to pull Bitcoin (BTC) up from its previous lows. Yesterday's price rebound was largely driven by an upbeat interpretation of a major economic report. The producer price index (PPI) in July showed an increase of 0.1% compared with the previous month, which was lower than market analysts' expectations.
The better-than-expected report helped ease market concerns that the economy could stall and had a positive impact on expectations for future interest rate cuts. The market currently expects an interest rate cut of at least 25 basis points, and some believe that the Federal Reserve may consider a larger rate cut at its mid-September meeting, that is, an interest rate cut of up to 50 basis points.
As cryptocurrencies become part of global markets, Bitcoin's price has become more responsive to economic data. Bitcoin now has its own spot exchange-traded fund (ETF), and Ethereum is actively following the trend. Trading in digital assets is no longer limited to the tech-savvy cryptocurrency community, with large investment firms and asset managers such as BlackRock and Fidelity also starting to get involved.
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