Bitcoin Reclaims Key $60,000 Level Ahead of CPI Data Release

Bitcoin Returns to Crucial $60,000 Level Ahead of CPI Data Release

Bitcoin (BTC) has returned above the $60,000 level, up 2.9% over the past 24 hours to $61,100 at press time. The positive price action came as stock markets rose following lower-than-expected producer inflation data released on Tuesday.

Japan’s Nikkei 225 index led the uptrend, fully recovering from the lows reached during the August 05 crash and closing up 3.45% yesterday. In the US, the S&P 500 and Nasdaq Composite Index also saw gains of 0.8% and 1.4%, respectively.

This was supported by a weaker than expected Producer Price Index (PPI) for July. PPI for July rose 0.1%, lower than economists’ forecast of 0.2%. Meanwhile, PPI for the 12 months to July rose 2.2%, below estimates of 2.3%.

Despite these developments, Bitcoin’s reaction was lukewarm, with trader Daan Crypto Trades highlighting the upcoming Consumer Price Index (CPI) release on August 14 as a possible catalyst for more significant moves. Meanwhile, exchange order book data from CoinGlass indicated a tight trading range, indicating increased buying interest around $58,000 and selling pressure around the $60,000 level.

Looking ahead, QCP Capital highlighted the importance of CPI data to market direction as investors remain cautious about future rate cuts. There is optimism about potential rate cuts from the Federal Reserve, with markets predicting a possible 0.5% decline in September, according to FedWatch data.