Bitcoin, Ethereum and XRP Slide After U.S. PPI Jumps 5.4%, Fed Hike Odds Rise to 74%
AI Market Summary
US PPI rose 5.4% y/y (above 5.3% consensus) and core PPI turned positive m/m, reinforcing inflation persistence. Rate-hike expectations tightened sharply, with implied odds rising to 74%, pressuring risk assets. Crypto sold off in response: BTC, ETH, and XRP declined as higher real-rate expectations and a stronger policy path reduce liquidity and compress speculative positioning in the near term.
Impact level
● High
Affected assets
BTC/USDT-1.56%
AI Insight · BTC/USDTAI Insight
▼ Bearish
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The U.S. Department of Labor released the latest Producer Price Index data, showing headline PPI up 5.4% year over year, slightly above the 5.3% market estimate. Core PPI on a month-over-month basis returned to growth. Following the release, expectations for additional Federal Reserve rate increases strengthened, with the implied probability of a hike rising to 74%. Cryptocurrencies moved lower: bitcoin fell about 2.7% to $77,300, ether dropped roughly 2.1% to $2,450, and XRP slid around 3.9% to $1.37.
