Bitcoin Price Dips from $58K Following Unexpected US PPI and Jobless Claims

September 13, 2024 08:36 PM AEST | By Team Kalkine Media

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Bitcoin Price Dips from $58K Following Unexpected US PPI and Jobless Claims — Image source: shutterstock

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Bitcoin experienced volatility as the U.S. macroeconomic data, released on September 12, generated mixed signals about inflation and economic conditions, impacting the cryptocurrency's performance as Wall Street opened.

The price of {Bitcoin} (BTC) saw fluctuations, dipping below $58,000 yet remaining relatively stable on the day. This movement came as the August Producer Price Index (PPI) reported a 0.3% increase month-on-month, slightly above expectations. However, the annual PPI came in at 2.4%, lower than anticipated. This divergence in data highlighted a nuanced inflation picture, as noted by trading resource The Kobeissi Letter.

Attention also turned to unemployment data, which showed 230,750 new jobless claims, exceeding the forecast of 227,000. Despite these mixed indicators, market sentiment remained optimistic regarding the Federal Reserve's upcoming decision on interest rates. According to CME Group’s FedWatch Tool, there is an 85% probability of a 0.25% rate cut at the Federal Reserve's meeting scheduled for September 18.

European Central Bank (ECB) actions were also in focus. Michaël van de Poppe highlighted that the ECB had already implemented a rate reduction, suggesting that similar actions by the Federal Reserve could be beneficial for Bitcoin. Van de Poppe noted that despite disappointing monthly data, overall PPI results were relatively favorable, potentially creating positive conditions for Bitcoin.

Bitcoin traders remained cautious amid these developments. After an initial decline, Bitcoin's price rebounded, influenced by a rise in tech stocks, concluding the day above $57,300. Market sentiment appears subdued, with resistance around $60,000 acting as a barrier. Popular trader Skew indicated that significant buying pressure is needed to overcome this resistance.

Additionally, monitoring resource CoinGlass observed increased ask liquidity around $58,500, which is keeping Bitcoin’s spot price below this level. Bitcoin statistician Willy Woo pointed out that the market conditions remain indecisive, with his proprietary indicators reflecting ongoing uncertainty.

Bitcoin’s struggle for support amid fluctuating macroeconomic data underscores the ongoing volatility in the cryptocurrency market as investors await further developments.

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