U.S. PPI Rises 2.7% YoY; Bitcoin Slides on Rate-Cut Doubts
September’s U.S. producer price index climbed 2.7% year-over-year, surprising markets and triggering an immediate drop in Bitcoin as traders reduced exposure to risk assets. The hotter-than-expected PPI makes a December Federal Reserve rate cut less likely and highlights crypto’s sensitivity to macro data and shifting monetary-policy expectations.
The data tightens the near-term outlook for BTC: a stronger inflation backdrop tends to support the dollar and bond yields, which can weigh on demand for speculative assets. Investors will be watching upcoming CPI prints, Fed minutes and policy remarks for confirmation, and any sustained rise in yields or risk-off flows could keep Bitcoin under pressure in the weeks ahead.