Investors bet on interest rate cut in September, German government hints at end of stimulus? BTC trading sideways.

Yesterday, on 7/12, all three major U.S. stock indices rose, with the Dow Jones DOW closing above 40,000 points for only the second time in history. Investors are digesting the impact of inflation data and ongoing financial reports. The Bitcoin balance labeled as the German government's wallet has been reduced to zero, signaling an end to the selling pressure concerns that investors previously had. Bitcoin has been trading in a narrow range recently.

PPI Rises by 0.2% in June, Investors Still Betting on Rate Cut in September

According to a report by CNBC, the U.S. Bureau of Labor Statistics announced that the Producer Price Index (PPI) rose by 0.2% in June, up 2.6% from the same period last year, slightly higher than economists' expectations.

This is in contrast to the Consumer Price Index (CPI) released the previous day. The CPI announced on Thursday showed a monthly decline in overall inflation, currently up 3% year-over-year.

However, the release of the PPI data seems to have no impact on investors' expectations of a rate cut by the Federal Reserve in September. According to the CME Group's FedWatch tool, traders expect a 94.1% chance of a rate cut of one percentage point or more in September. The Fed's most closely watched inflation indicator, the Personal Consumption Expenditures Price Index (PCE), will be released on July 26.

Germany Government Bitcoin Wallet Emptied

According to data from Arkham, the Bitcoin wallet labeled as the German government has been emptied, with the 50,000 bitcoins previously seized in the Movie2K piracy website being gradually transferred to different exchanges and market makers.

On Friday, the German government's wallet made the final transfer of bitcoins to wallets possibly belonging to institutions like Flow Traders and 139Po, which may be custody and over-the-counter trading services. The wallet balance has now been emptied, putting an end to concerns about potential selling pressure.

Selling Pressure Ends, Bitcoin Poised for Rebound?

Reports from JPMorgan and Bitfinex suggest that with the end of liquidation activities and selling by short-term holders, the market is nearing a bottom and could rebound in August.

JPMorgan: Bitcoin liquidation activities to end this month, market to rebound in August

Bitcoin dropped to $53,485 last week, showing signs of stabilization recently, with initial resistance seen at the psychological level of $60,000.