Bitcoin Price Falls Amid Fresh Inflation Data

By
Tana Harina

05/14/2024

4,8

★

In the US, the producer price index (PPI) was published. Bitcoin's reaction was not long in coming.

The U.S. Bureau of Labor Statistics released fresh inflation data on Tuesday. The Producer Price Index (PPI) for final demand in the US rose by 2.2% year-on-year in April. The value matched market expectations. Meanwhile, the annualized core PPI rose 2.4% over the same period, matching March's reading. On a month-on-month basis, the producer price index and core producer price index rose 0.5% in April.

The US dollar reacted with growth and reached a daily high of 105.50. Interestingly, the dollar and Bitcoin are historically correlated, so Bitcoin's reaction to the fresh inflation data was negative.

After massive sell-offs on Coinbase preceding the platform's failure and affecting Bitcoin's sharp fall, the main cryptocurrency continued to sag. Bitcoin has fallen to $61,500 in the last 24 hours.

The asset continues to show negative dynamics, heading towards a potential test of the support level around $60,200. Bitcoin is trading in a sideways range and will continue until it drops below the aforementioned support level or, on the contrary, overcomes a serious resistance level around $64,500.

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