Bitcoin News Today: July U.S. PPI Surges 0.9% Monthly, 3.3% Yearly Spur Crypto Market Uncertainty

The latest U.S. Producer Price Index (PPI) data has intensified the scrutiny on the crypto market, casting a spotlight on how rising inflationary pressures might affect the recent rally in digital assets [1]. In July, the PPI for final demand surged by 0.9% from June, marking the largest monthly gain since early 2022. Year-over-year, wholesale prices rose 3.3%, the fastest pace in more than two years [1]. Core PPI, which strips out volatile sectors like food and energy, also climbed by 0.6% monthly and 2.8% annually, reinforcing concerns about persistent inflation [1].

These developments are critical for the crypto market, as they fuel speculation that the Federal Reserve might delay or scale back its expected rate cuts. Stronger-than-anticipated PPI readings could signal that inflation is not easing as quickly as anticipated, potentially prompting the Fed to maintain higher interest rates for a longer period. Elevated borrowing costs typically suppress liquidity, which in turn can dampen investor appetite for risk assets, including cryptocurrencies [1].

Bitcoin and Ethereum, which have recently reached new highs, may see their trajectories shaped by how the market interprets the PPI report. If the data is viewed as a sign of robust inflation, crypto prices could face downward pressure as capital shifts toward safer assets. Alternatively, if the figures are seen as a demonstration of economic resilience, risk appetite might remain intact, supporting the continued upward trend in crypto prices [1].

Market observers have outlined multiple scenarios based on the PPI data. A bearish outcome would occur if traders believe the Fed remains hawkish, leading to a sell-off in crypto as investors flee to safer investments. A neutral outlook suggests market consolidation, as the tension between inflation risks and growing institutional demand for Bitcoin and Ethereum balances out. A bullish scenario, meanwhile, could emerge if inflation fears push investors toward assets perceived as inflation hedges, with Bitcoin potentially benefiting from its “digital gold” narrative [1].

With Bitcoin trading near recent highs and Ethereum showing resilience, the next major moves in the crypto market will likely depend on broader macroeconomic sentiment and whether liquidity conditions remain favorable. The upcoming PPI data will serve as a key barometer for the Fed’s policy direction and, by extension, the future performance of digital assets [1].

Source: [1] US PPI could douse overheated Fed cut bets - FXStreet

https://www.fxstreet.com/analysis/us-ppi-could-douse-overheated-fed-cut-bets-202508140546