Bitcoin-friendly PPI data boosts bulls as Ether price struggles for $2K
Bitcoin (BTC) maintained $30,000 support at the April 12 Wall Street open as more US macroeconomic data boosted bulls.
The PPI suggests that further falls in inflation are coming
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hovering near $30,250 on Bitstamp.
Amid a drop in volatility, US producer price inflation (PPI) data provided a timely hint that inflation was slowing faster than expected.
Headline PPI came in at 2.7% year-on-year against market expectations of 3% – an encouraging result for risk assets.
Financial commentary resource The Kobeissi letter was among these notes that the month-on-month fall in PPI values was the largest since the peak in March 2022.
“The headline PPI inflation rate has fallen from 11.3% to 2.7% since June 2022, less than 1 year ago. There has also been no monthly increase in PPI inflation since June 2022.” added.
In reaction, market commentator Tedtalksmacro suggested the figures would also snowball for another key inflation gauge, the consumer price index (CPI), which also beat forecasts for March.
“Indicative of further declines in CPI/PCE in the coming months,” he in summary in comments about the PPI result.
Faster inflation has traditionally boosted the performance of cryptoassets as it raises hopes that US economic policy will become less restrictive.
An important event for market participants now will be the Federal Reserve’s next interest rate change, and the decision on this will come in May.
According to CME Group’s FedWatch Tool, expectations still favored a further 0.25% rate hike, with PPI notably doing little to change sentiment.
Bitcoin, Ether battle at key levels
Meanwhile, while holding $30,000 as support, Bitcoin failed to convince everyone that its ten-month peak would stick.
Related: Can Ethereum Break $2K? ETH price inches closer despite new unlocked supply
Monitoring resource Material Indicators warned of a bearish signal on its proprietary trading tool, within a broader bullish context.
ONE snapshot of buy and sell levels on the Binance order book before the PPI meanwhile showed the strongest resistance parked at $30,500.
“Liquidity for nearby bids may limit downside volatility, but this is the #WildWest of #Crypto, so anything goes. Look for blankets,” Material Indicators wrote in a section of accompanying comments.
As Cointelegraph reported, the biggest altcoin stole the spotlight on the day, Ether (ETH), passing $2,000 for the first time since last August.
The views, thoughts and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
