Bitcoin rebounds on PPI data after October inflation came in below expectations. Consequently, BTC rose to as high as $70,000 from a low near $69,000. At press time, it traded around $68,800, still down over 3% on the day.
Why Bitcoin rebounds on PPI data today
The BLS reported October PPI rose 6.5% year over year. That was below expectations. Month over month, the index rose 0.3%, also below the 0.4% forecast. Meanwhile, core PPI matched expectations at 0.3% monthly and 5.0% yearly.
This marks a positive shift for crypto. Earlier this week, CPI came in above expectations. That raised forecasts of a potential 50-basis-point December rate hike. Now, however, PPI suggests inflation may be cooling.
Traders pare bets on a 50 bps hike
Crypto traders reduced their bets on a 50 bps December hike. Polymarket data shows a 0% chance of that outcome. That is down from as high as 10%.
Nevertheless, the Fed is still expected to raise rates by at least 25 bps next month. Polymarket shows a 100% chance of a 25 bps hike.
Other factors still pressure crypto
Concerns about a Fed hike are not the only issue. For example, the stock market has declined recently, especially AI stocks. In addition, MSCI decided to remove Strategy from its global indexes. That raises questions about the company and its treasury strategy.
Key takeaway
Bitcoin rebounds on PPI data with a move to $70,000. However, BTC remains down on the day. Traders should watch the Fed’s December meeting and broader market conditions.