Bitcoin Surges 10% to $83,245 as US PPI Data Misses Expectations

Bitcoin (BTC) surged to higher levels around the April 11 Wall Street open as the week’s final US inflation data provided optimism for bulls. Data from Cointelegraph Markets Pro and TradingView showed BTC/USD reaching highs of $83,245 as US Producer Price Index (PPI) data came in below expectations. The Index came in at 2.7% versus the anticipated 3.3%, while the core PPI print also surprised to the downside. An official news release from the US Bureau of Labor Statistics (BLS) added that in March, over 70 percent of the decrease in the index for final demand can be traced to prices for final demand goods, which fell 0.9 percent. The index for final demand services declined 0.2 percent.

Reacting to the data, trading resources noted the rapid pace at which US inflation appeared to be slowing. The first month-over-month decline in PPI inflation, down -0.4%, since March 2024, was observed. Both CPI and PPI inflation were down sharply. However, risk-asset performance failed to reflect the notionally positive inflation developments. The S&P 500 was 0.2% lower on the day, while the Nasdaq Composite index was flat. Commentators explained that macro data was helping to fuel the ongoing US trade war. Crypto trader, analyst, and entrepreneur Michaël van de Poppe saw a repeat playing out post-PPI. “PPI comes in significantly lower. That's great for Trump and his strategy,” he argued, referring to trade tariffs implemented by US President Donald Trump. “The only thing that needs to be resolved is the ongoing Trade War, but the ingredients are building up.”

Another macro development failing to provide its standard risk-asset tailwind came in the form of multiyear lows in US dollar strength. The US Dollar Index (DXY), which measures the dollar against a basket of US trading partner currencies, fell below the psychological 100 mark for the first time since 2022. Long-term lows on DXY have historically sparked a delayed BTC price bull run. “Traditionally, DXY going down is very bullish for $BTC, we now have a massive bearish divergence for DXY, which may suggest it goes to 90,” popular crypto analyst Venturefounder observed. “Last 2 times this happened triggered a Bitcoin parabolic bullrun in the final phase of the bull market (lasting 12 months).”

An accompanying chart examined relative strength index (RSI) data for the DXY monthly chart, showing it retesting a downward-sloping trend line as support from above. This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.