🚨 US August PPI Cools Sharply—Crypto Reacts
Fresh data from the U.S. shows wholesale inflation coming in much softer than expected. August PPI fell 0.1% MoM (vs. +0.3% est.) and slowed to +2.6% YoY (vs. +3.3% est.), driven by cheaper services and lower energy costs. Core PPI also moderated, signaling that underlying price pressures are easing.
Markets reacted instantly. Bitcoin bounced above $113K, climbing around 1% as traders priced in stronger odds of Federal Reserve rate cuts. Current market bets show a 92% chance of a 25 bps cut at the Sept. 17 FOMC, with some even speculating on deeper easing by year-end.
This cooler inflation print is a potential turning point. It hands the Fed room to ease policy, which typically boosts risk assets like crypto. But the story isn’t finished—next week’s CPI release will be the real test. If consumer inflation confirms this downtrend, momentum for $BTC and the broader market could accelerate fast.