BTC price due for $31K as analyst says 'disinflation' boosting Bitcoin
Bitcoin (BTC) looked set to challenge range highs on July 13 as fresh macroeconomic data boosted risk asset bulls.
Data from Cointelegraph Markets Pro and TradingView followed the market as the BTC price focus shifted above $30,500.
PPI inflation leads CPI by a few months... and today's PPI numbers have YoY running at +0.24%Almost in deflation! Fed pivot anyone? https://t.co/oM4ck5Vgwy pic.twitter.com/Xl78ohLzOM
United States Producer Price Index (PPI) numbers released on the day again came in below expectations, aiding rapidly abating inflation forecasts.
With two weeks to go until the Federal Reserve decided on interest rate policy, however, markets themselves remained convinced that another hike would come next — despite the PPI and Consumer Price Index (CPI) data from the day prior.
According to CME Group’s FedWatch Tool, bets on a 0.25% hike stood at almost 95% at the time of writing.
“Quite literally, everything is pointing to more disinflation in the months & quarters ahead (even if energy rallies from here). Core CPI is going to decelerate so fast, people will be shocked,” Caleb Franzen, senior market analyst at Cubic Analytics, wrote in part of follow-up.
Franzen argued that declining inflation had directly influenced the BTC price rebound throughout 2023.
“Notice how equities are ripping this year? Notice how Bitcoin is up +86% YTD? Asset prices are multi-variate, but a lot of the upward momentum has been from disinflation,” he explained.
On Bitcoin itself, the mood was more optimistic.
Related: Will Bitcoin catch up? BTC price was $40K when the dollar was previously this weak
Alongside PPI came news that Europe would see its first Bitcoin spot exchange-traded fund, or ETF, launching this year.
Michaël van de Poppe,
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