Bitcoin remains stable at $30,000 support, despite positive PPI data, while Ether rallies to defend the $2,000 mark, which it reclaimed for the first time in eight months. The market update shows that BTC/USD is hovering near $30,250 on Bitstamp, with US Producer Price Inflation (PPI) data indicating that inflation is slowing down faster than expected. The headline PPI came in at 2.7% year-on-year, which is below market expectations of 3%. This is a positive sign for risk assets, and it is indicative of further falls in CPI/PCE in the coming months.
Financial commentary resource The Kobeissi Letter noted that the month-on-month drop in PPI values was the largest since the peak in March 2022. The overall PPI inflation rate has fallen from 11.3% to 2.7% since June 2022, less than a year ago. There has also not been a monthly increase in PPI inflation since June 2022. Market commentator Tedtalksmacro suggested that the numbers would also provide a snowball effect for another key inflation metric, the Consumer Price Index (CPI), the March print for which also beat prognoses.
Inflation subsiding faster has traditionally buoyed cryptoasset performance as it raises hopes that U.S. economic policy will become less restrictive. However, the Federal Reserve’s next interest rate change, the decision on which is due in May, will be a key event for market participants. According to CME Group’s FedWatch Tool, expectations still favored a further rate hike of 0.25%, with PPI notably doing little to change the mood.
While Bitcoin is holding $30,000 as support, it failed to convince everyone that its ten-month peak would stay. Monitoring resource Material Indicators warned of a bearish signal on its proprietary trading tools, within a broader bullish context. A snapshot of buy and sell levels on the Binance order book prior to PPI showed the strongest resistance parked at $30,500. “Near range bid liquidity may limit the downside volatility, but this is the #WildWest of #Crypto so anything goes. Watch for rugs,” Material Indicators wrote in part of accompanying comments.
On the other hand, it was Ether that stole the limelight on the day, passing $2,000 for the first time since August last year. The largest altcoin rallied to defend the $2,000 mark, and it is currently trading at $2,022. Ether’s rally is a positive sign for the market, and it is indicative of the growing adoption of the Ethereum blockchain.
In conclusion, Bitcoin remains stable at $30,000 support, despite positive PPI data, while Ether rallies to defend the $2,000 mark. The market update suggests that there is a growing optimism in the market, and it is indicative of the growing adoption of cryptocurrencies. However, investors should remain cautious as the market remains volatile, and there is still uncertainty surrounding the Federal Reserve’s next interest rate change.