US PPI Drops, But Bitcoin Slips: What Is Really Happening?

The crypto market is once again shocked by unusual movements. Although the US Producer Price Index (PPI) data for April recorded a decrease to 2.4%—lower than analysts' expectations of 2.5%—Bitcoin's price has actually dropped. BTC recorded a daily correction of 1.52% and is now trading around US$102,457.

Interestingly, the core PPI inflation remains at 3.1%, in line with market expectations. However, surprises emerged from the significant upward revision of March data: the main PPI was revised from 3.3% to 4.0%, while core inflation also rose to 3.4%.

Inflation Drops, But Why Does BTC Drop Too?

This data provides mixed signals. On one hand, the slowdown in April inflation could be good news for investors—offering hope that price pressures are beginning to ease. However, sharp revisions to the March data indicate that inflation still holds uncertainties, and the long-term trend has not yet stabilized.

This creates a dilemma among market participants, including crypto investors. Market sentiment sensitive to the direction of the Fed's interest rate policy puts pressure on Bitcoin. The market seems to doubt the likelihood of interest rate cuts in the near future, which dampens the appetite for risk toward speculative assets like BTC.

What Does This Mean for Crypto Investors?

This movement serves as a reminder that crypto assets—despite often being considered 'free from the system'—are still heavily influenced by macroeconomic data. Such volatility can present opportunities for short-term traders, but it serves as a warning for long-term investors to remain vigilant and not just focus on headline numbers.

Conclusion: Beware of Macro Uncertainty

The April PPI data adds to the long list of confusing economic signals from the US. Although inflation appears to be slowing, revisions of past data indicate a still rocky path. For crypto investors, it's the right time to strengthen strategies, carefully read market directions, and of course—be prepared to face volatility that could arise at any moment.

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