U.Today – The market is on track to chart a recent course of growth following the release of the U.S. Producer Price Index (PPI) for May. This data has a major impact on the broader classic market as well as the cryptocurrency ecosystem.
Bitcoin’s reaction to PPI data from the US
The PPI reading is one of the main economic data points used to measure the impact of inflation on the world’s largest capital market. According to published data, the monthly PPI reading stands at -0.2% compared to the previous reading of 0.5%.
This better-than-expected 0.1% figure means that the Federal Reserve’s monetary policy has generally been successful in keeping inflation steady. Benefits could be felt as risky assets such as Bitcoin recover.
At the time of writing, the digital currency maintained its bearish decline, falling 3.76% to $67,351 in the last 24 hours. This represents a major derailment from the slightly bullish momentum earlier in the week, when the coin made decisive moves to break above the $70,000 price level.
According to current forecasts, the digital currency may react negatively to this news as a stronger PPI indicates a resilient economy, giving corporate investors additional incentive to choose classic assets over risky ones.
Bitcoin ETF Catalyst
While the current sentiment from US PPI data may not be favorable for Bitcoin, the impact of spot ETF trading could change the narrative overall.
With spot Bitcoin ETFs actively trading in the US, UK, Canada, and most recently Hong Kong and Australia, there are ample opportunities to purchase the coin and see its price grow long-term.
Despite the decline, over 513 million Bitcoins, or $34,291,565,528, were sold in 24 hours, an escalate of 17%. This indicates a bullish turn that could contribute to hindering BTC’s recovery.
