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    Bitcoin surfs US PPI overshoot as BTC price recovers from sub-$59K dip

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    Bitcoin’s value approached $61,500 on October 11, despite US inflation news. The Producer Price Index (PPI) was higher than expected, intensifying inflation concerns and presenting issues for the Federal Reserve. Bitcoin’s value increase followed the Federal Reserve’s 0.5% interest rate cut, and cryptocurrencies now appear to be diverging from share values. However, their gains may slow due to the new PPI data affecting predictions for the November interest rate decision. Bitcoin’s future trends are uncertain, with varying predictions for its value. Please note, this article is not an investment or trading advice.

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    Bitcoin’s value was getting close to $61,500 during the Wall Street opening hours on October 11, despite some unexpected inflation news in the US. Data from Cointelegraph Markets Pro and TradingView showed that Bitcoin reached new highs of $61,476 on Bitstamp.

    Inflation news came in the form of the Producer Price Index (PPI), which was higher than predicted at 1.8% compared to an expected 1.6%. This added to inflation worries, as the PPI and Consumer Price Index (CPI) both indicated increased inflation. This has been causing some problems for the Federal Reserve, especially since both PPI and CPI inflation rates are now rising again.

    Some people are saying that the Federal Reserve’s 0.5% interest rate cut last month wasn’t needed, because of these rising rates. The rate cut did lead to an increase in the value of Bitcoin and other cryptocurrencies, and now the values of these cryptocurrencies appear to be departing from shares values, which are still increasing.

    However, some predict that the gain for cryptocurrencies may soon slow down. The new PPI information slightly affected the market’s prediction for the Federal Reserve’s next interest rate move in November. The chance of a smaller 0.25% cut is now predicted to be around 84%, while maintaining current rates is seen as having an around 17% chance.

    In terms of the Bitcoin market, some experts are watching out for a retest of resistance on the price chart. Bitcoin managed to regain a value of $60,600/800 overnight, after dropping to lows of $58,860. However, there are differing perspectives about future trends: some anticipate a return to a $65,000 value, and others predict a dip or the need to reach a value of $63,900 in order to avoid a short-term market drop.

    Please keep in mind, the information in this article is not investing or trading advice. Always do your own research and be aware that investing and trading comes with risks.

    Source: Cointelegraph

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