July US PPI data shows inflation easing, boosting stocks and supporting Bitcoin above $63,900 amid reduced rate hike expectations.
Bitcoin traded near $63,900, up 0.5% on the day, as US equities rallied following cooler-than-expected July Producer Price Index data. The PPI rose 0.2% month-on-month, unchanged from June, and 4.7% year-on-year, below the anticipated 4.9%. Falling gasoline and energy prices drove the moderation, according to the Bureau of Labor Statistics.
The data reinforced a trend of easing inflation, reducing market expectations for further Federal Reserve interest rate hikes. US stocks opened higher, with the S&P 500 and Nasdaq gaining ground. Bitcoin avoided further declines, though traders remain cautious of long liquidation risks near $61,000.
Cleveland Fed President Loretta Mester maintained a hawkish stance on monetary policy, emphasizing the need for sustained inflation control. Volatility in Bitcoin markets remained subdued despite the modest price movement.