Bitcoin Also, other cryptocurrencies have slipped after producer prices rose after interest rate hopes slowed. US Treasury Secretary Scott Bescent said the government will not begin cutting checks to flesh out the strategic Bitcoin reserve.
Bitcoin changed about $118,000 on Thursday, down 2.9% over the past day, according to the Crypto Data Provider. Co Ringecko. Ethereum It also fell 2.9% to $4,560 Solana and XRP It fell 2.4% to $194 and 5.7% respectively, from $3.07.
The PPI report snapped Bitcoin’s powerful trading week. The asset price set a new high above $124,000 on Wednesday, but Ethereum surged towards record levels.
Producer Price Index (PPI) tracks price changes across a wide range of products and services aimed at producers, jumping to 0.9% in July. I said Thursday. Economists expected the index to rise by 0.2% each month.
Higher than expected PPI readings, representing the largest monthly increase since May 2022, showed an increase in the trade component of the index, a worrying sign of the Federal Reserve, according to Liz Thomas, director of investment strategies at personal finance company SOFI.
“The Fed won’t like this report,” she said. I said x.
The central bank has stabilized interest rates so far this year, fearing that US President Donald Trump’s tariffs will make it difficult to meet its 2% inflation target. As some officials pointed out Signs of vulnerability However, in the recent labor market, traders are confident that the Fed will cut fees at the end of the September meeting.
Traders took a small step on Thursday, tightening their pencils compared to the previous 94.3% with a 92.8% chance of a quarter-point rate reduction at the end of the Fed’s next meeting. CME FedWatch.
Citing a massive downward revision of May and June employment figures, Bessent advocated a 50 Veges Point Rate cut on Tuesday. The odds of speed reductions for the jumbo size in September evaporated on Thursday, dropping from 5.7% a day ago to 0.0%.
Bessent’s comments may have worked in Bitcoin favor earlier this week, and his latest comments appeared to undermine enthusiasm for the coin on Thursday, as risky assets such as stocks and crypto have historically benefited from low interest rates.
Officials said the government “doesn’t intend to buy Bitcoin” to compensate for existing holdings of the assets that have been confiscated. Previously, the White House had it I teased Buy Bitcoin and add it to your country’s stockpile in a budget-neutral way.
“We’ll continue to use the assets that have been confiscated and build them,” Bescent said of the Bitcoin Reserve. “We’re going to stop selling it.”
