Recently, the producer price index (PPI) announced by the United States reached 4.6%, which was lower than the expected 5.4%. The index shows that inflation is slowing.
The Producer Price Index (PPI) represents changes in the prices of goods and services during production. As producers pay more for goods and services, the cost borne by consumers may increase. Therefore, PPI is one of the leading indicators of consumer inflation.
According to the US Bureau of Labor Statistics, PPI was 0.8% lower than expected. Falling PPI is usually good news for a stronger dollar, but not for cryptocurrencies.
The PPI for final demand fell 0.1% in February. The demand price of final goods decreased by 0.2%, and the demand index for final services decreased by 0.1%. Prices on final demand rose 4.6% in the 12 months ended in February.
Minutes after the PPI was released, bitcoin fell more than 4 percent below $25,000 after hitting a nine-month high of around $26,500 on Tuesday, trading at $24,959.
In February, the US announced that PPI in January increased by 0.7%, which was higher than expected. Bitcoin’s price at the time was also bucking the dollar’s upward trend.
Bitcoin’s weekly chart shows the cryptocurrency once again struggling to gain a foothold above $25,000, where it capped gains last month and into August 2022.
According to franchise market technician Aksel Kibar, a break above $25,000 will shift the focus to the next hurdle at $28,600.
“The challenge for BTCUSD is to meet strong resistance at $28,600 immediately after fully recovering $25,000. The ideal situation is to break through $25,000 and break through $28,600 in one fell swoop.”
Meanwhile, altcoins continued to rise, with Stack (STX) leading the way with a 36% gain in the past 24 hours, followed by Immutable X’s IMX, a layer 2 scaling tool for NFTs on the Ethereum blockchain, The increase is 30%.
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