U.S. PPI higher than expected, Bitcoin briefly drops below seventy thousand, will there be a temporary correction?
Yesterday, the United States released the Producer Price Index (PPI) higher than market expectations, leading to a broad decline in the stock market. Bitcoin also gradually declined after reaching a high of 73,777. Ethereum fell below 4,000. Recently, the probability of analysts approving an Ethereum spot ETF in May has been lowered, causing weakness in ETH's performance. Bitcoin, on the other hand, continues to fluctuate at high levels but lacks stronger catalysts for further upward movement. Analysts predict a temporary price correction.
Bitcoin to face temporary pullback? Analysts predict BTC to fall to $58,000
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PPI Higher Than Expected, Expectations of Rate Cut Decline Again
Following the Consumer Price Index (CPI), the Producer Price Index (PPI) also exceeded market expectations, indicating increased cost pressures. The February PPI was announced yesterday with a monthly growth rate of 0.6%, while the core PPI, excluding food and energy prices, increased by 0.3% on a monthly basis. Meanwhile, retail sales in the U.S. rebounded by 0.6% in February, but the growth was lower than expected.
Market expectations are that the Federal Reserve will maintain interest rates unchanged for the fifth consecutive time at the meeting on March 20. According to CME FedWatch, investors have completely ruled out the possibility of a rate cut in March and May, with the probability of a first rate cut in June also dropping to 54.6%.
Markets will focus on the post-meeting press conference on March 20 and the interest rate dot plot to be released by the Federal Reserve. According to the December dot plot, officials anticipate three rate cuts this year, each by 25 basis points. Currently, market expectations seem to be aligning more closely with the Fed's predictions compared to before.
Bitcoin Sees Volatility Again, Over 100 Million Positions Liquidated
Yesterday, Bitcoin surged to a high of $73,777 around 3 PM in Taiwan, but gradually declined to a low of $68,555. Over 110 million positions were liquidated within 24 hours. Despite Bitcoin's continued oscillation at high levels, the market's greed index remains at a high of 88, and Binance's USDT savings interest rate is still at 25%, indicating that many investors are still engaging in leveraged operations.
