#CreatorPad Bitcoin's Decline Intensified After US Inflation Report Shook Markets

Bitcoin dropped sharply after a higher-than-expected US PPI data surprised traders.

Bitcoin's Decline Intensified After US Inflation Report Shook Markets

Market Analysis

Key Points:

Bitcoin fell below $118,000 after higher US PPI data fueled concerns about inflation.

The odds of an interest rate cut by the Federal Reserve dropped to 90.5% from 99.8%.

Double-top signals and short-term pullbacks in BTC price give room for altcoins to rally.

Bitcoin

BTC

€101,832

plummeted sharply from its new all-time high of $123,400, falling to $117,400 on Thursday. The correction occurred when US Producer Price Index (PPI) data came in higher than expected, surprising the market.

Cryptocurrencies, Bitcoin Price, Markets, Cryptocurrency Exchange, Bitcoin Futures, Price Analysis, Market Analysis

Four-hour Bitcoin chart. Source: Cointelegraph/TradingView

The latest PPI data showed that overall annual inflation stood at 3.3%, well above the forecast of 2.5% and the previous month's reading of 2.3%. This is the largest monthly increase in US PPI since June 2022. The increased price pressures stand in stark contrast to the more moderate data from July's Consumer Price Index (CPI) on Tuesday, which indicated that overall inflation remained at 2.7% year-on-year and core CPI at 3.1%, reinforcing a bullish argument for risk assets at that time.