US PPI Inflation Climbs to 6.5% as Bitcoin Slips Below $70K
US producer price inflation accelerated in October even as the monthly increase undershot forecasts, a mix that complicates the next Federal Reserve rate decision. The Bureau of Labor Statistics published the figures on Nov. 13. Bitcoin and technology shares came under selling pressure, leaving the crypto market with mixed signals.
Final-demand producer prices rose 0.3% in October after a revised 1.4% gain in September. Economists had expected a 0.4% monthly increase, according to the Danske Bank economic calendar. Annual producer inflation reached 6.5%, below the 6.6% forecast, up from 6.3% in September and the highest since November 2022. The slower-than-forecast monthly gain eased one immediate concern, but the annual increase reinforced expectations of tighter U.S. monetary policy. Higher borrowing costs can pressure assets whose valuations depend on the willingness of investors to take risk.
Goods prices rose 0.5%, while services prices increased 0.2%. Food prices advanced 1.3%; energy prices edged down 0.1%. Transportation and warehousing services climbed 2.0%, pointing to continued pressure outside energy. Truck freight prices rose 3.9%.
The BLS reported a 4.9% annual increase in final-demand prices excluding food, energy and trade services. That measure differs from the commonly cited core PPI series, which excludes only food and energy and rose 5.0% annually, matching expectations, according to the Associated Press. Earlier in the week, the agency reported a 0.4% monthly increase in October consumer prices after a 0.6% rise in September. Together, the releases suggested inflation remained persistent despite slower monthly increases in selected measures.
Traders assigned an 88% probability to a quarter-point December rate increase ahead of the market session on Friday, Investopedia reported. That figure reflected market pricing, not a Federal Reserve decision, and can shift as futures respond to inflation data and remarks from officials. The next Federal Reserve policy meeting is scheduled for Dec. 8-9. Policymakers left the benchmark rate range at 3.75%-4.00% at the October meeting. The next decision will reflect broader evidence than any single inflation report.
For investors, the gap between annual and monthly inflation mattered. The below-consensus monthly result offered limited relief, while elevated yearly readings complicated expectations for easier financial conditions. Traders also faced uncertainty over the size of any potential increase. A Fed rate hike would raise short-term financing costs and could affect leveraged trading, but the data did not establish that officials would choose a particular increase. CME FedWatch probabilities describe trader positions rather than a commitment from the central bank.
CoinGlass futures data showed Bitcoin fell below $70,000 and traded near $68,828, down about 6.4% over 24 hours during the selloff on Friday. Its tracked intraday range stretched from $67,449 to $73,608. Ether also traded below $2,000, extending losses across larger digital assets. The derivatives platform recorded roughly $919 million in Bitcoin futures liquidations over its rolling 24-hour window. Long positions accounted for approximately 95% of the total. Bitcoin futures open interest fell 5.92%, suggesting traders closed or lost leveraged exposure during the decline.
The CoinGlass Bitcoin ETF dashboard also showed about $47.7 million in net outflows from U.S. spot Bitcoin exchange-traded funds for Nov. 12. That preliminary figure concerned the preceding trading session, not flows triggered by the PPI release on Friday. Fund flows can lag spot-market movements.
Barron’s reported that Dow futures gained 0.5% after the wholesale inflation figures appeared. S&P 500 futures advanced 0.6%, and Nasdaq 100 futures rose 0.5%. Those early gains followed stock-market weakness on Thursday rather than confirming a sustained recovery. Investopedia said the 10-year Treasury yield hovered near 5.13% amid expectations for further monetary tightening. Elevated yields can compete with equities and non-yielding digital assets for capital. The divergent moves in futures and cryptocurrencies on Friday showed markets had not responded uniformly.
The next scheduled Federal Reserve meeting on Dec. 8-9 offers a defined policy catalyst. Before that decision, investors will examine further inflation releases and statements from officials for evidence of sustained price pressure. This report, first published by The Market Periodical, covers market conditions and is not investment advice.
