U.Today – The market is on track to chart a new growth course following the publication of the US Producer Price Index (PPI) for May. This data has a major effect on the broader traditional market as well as the crypto ecosystem.
Bitcoin Reaction to US PPI Data
The PPI reading is one of the main economic data used to measure the impact of inflation on the world's largest capital market. According to the published data, the month-on-month reading of the PPI is -0.2%, compared to the previous reading of 0.5%.
This 0.1% better-than-expected value implies that the Federal Reserve's monetary policies, in terms of keeping inflation stable, have generally been working. The benefit could be felt with a recovery in risk assets like Bitcoin.
At the time of writing, the digital currency has maintained its bearish decline, down 3.76% in the last 24 hours to $67,351. This is a big derailment of the slightly bullish momentum earlier in the week, when the coin made emphatic moves to break above the $70,000 price level.
Based on current outlooks, the digital currency could be reacting negatively to the news as a stronger PPI means a resilient economy, giving corporate investors additional incentive to choose traditional assets over risk assets.
Bitcoin ETF Catalyst
While the current sentiment from the US PPI data might not be favorable for Bitcoin, the impact of ETF spot trading could change the overall narrative.
Since Bitcoin spot ETFs are actively traded in the United States, the United Kingdom, Canada, and recently Hong Kong and Australia, there are enough avenues to purchase the currency and drive the price up in the long term.
Despite the reduction, more than 513 million Bitcoin, or $34,291,565,528, were traded in 24 hours, an increase of 17%. This is an indication of a bullish turn that could contribute to the hurdle of BTC's revival.
This article was originally published on U.Today.
