Bitcoin Jumps Past $114K As Markets Eye Fed Easing After PPI Report

Christian Encila

1 month ago

3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Bitcoin climbed past $114,000 this week, pushing markets higher after a surprisingly weak reading on producer prices. According to reports, the move followed a pullback in US PPI that many traders read as a sign the Federal Reserve may be able to start cutting rates.

The jump was quick and loud on price charts. It caught the attention of both retail traders and bigger money.

Cooling Inflation Spurs Rate Cut Bets

According to published data, US Producer Price Index (PPI) fell to about 2.6% year-on-year, while core PPI — which strips out food and energy — came in near 2.8%.

On a monthly basis, PPI showed a drop, one of the first such moves since March 2024. Based on reports, those weaker numbers fed hopes that the Fed could ease policy sooner rather than later, and markets reacted accordingly.

Bitcoin’s Rally And Broader Crypto Moves

Bitcoin hit roughly $113,850 on some exchanges before trading above $114,000, and Ethereum climbed past $4,400 as part of the same upswing.

Reports have disclosed that institutional flows and stablecoin liquidity helped lift prices, and that investor positioning shifted toward risk assets after the data.

Traders were watching support around $112,500-$113,000 and resistance near $115,000-$115,500 as the session progressed. Momentum was strong, but some caution remained.

BTCUSD trading at $113,932 on the 24-hour chart: TradingView

Bitcoin’s Technical Levels And Flows

Market technicians pointed to clear levels. If support near $112,500 breaks, it could open the way to a short pullback. If $115,500 is cleared, buyers may push for higher ranges.

At the same time, some on-chain indicators showed rising transfers into exchanges, a sign that profit taking could be ahead. Reports have disclosed that both demand and supply signals will be watched closely by desks and algorithmic funds.

While PPI cooled, other data could change the picture. Consumer inflation and jobs figures are still to be watched, and those reports can keep the Fed on guard.

Rate cuts are now being priced in by some traders, perhaps as soon as September, but that outcome is not guaranteed. If consumer prices re-accelerate or job strength stays high, easing could be delayed and markets may retrace gains.

What Investors Should Watch Next

According to market commentators, the key near-term items are the upcoming CPI release, monthly jobs data, and Fed commentary. Also important are flows into spot products and the dollar’s direction — a firmer dollar would likely pressure risky assets.

Traders will also keep an eye on how quickly liquidity moves from stablecoins into BTC and ETH, and whether profit-taking appears at the big technical thresholds already mentioned.

Featured image from Meta, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.