Bitcoin Price Soars Above 58000 Despite High PPI Inflation What Comes Next
Bitcoin continues to display unconventional price movements, particularly against the backdrop of broader macroeconomic trends. In June, the US Bureau of Labor Statistics released a Producer Price Index report that exceeded expectations. Year-over-year inflation reached 2.6%, surpassing the anticipated 2.3%, while the core PPI climbed to 3%, exceeding market consensus of 2.5%.
Despite this inflationary pressure, Bitcoin defied expectations by rallying nearly 3% from its recent lows, now trading at $58,300.
Notably, BRC-20 tokens are capitalizing on Bitcoin’s strength, with ORDI and Stacks surging by almost 10%. A new entrant, 99BTC, has also seen significant demand, raising approximately $2.5 million in its presale. In the Ethereum ecosystem, emerging meme coins like WienerAI are poised for substantial growth.
The recent rise in Bitcoin’s price, despite adverse inflation data, raises questions. Bitcoin experienced a notable correction, dropping nearly 3% to $56,000, despite a favorable Consumer Price Index report. Speculation suggests that recent sell-offs by entities like the German government, Genesis, and Mt. Gox may have triggered this correction, unaffected by CPI or PPI data.
Moreover, the US stock market also faced steep declines post-CPI, with the NASDAQ 100 plummeting nearly 3%, possibly due to recessionary concerns amplified by weaker-than-expected ISM Service PMI earlier in the month. Paradoxically, the robust PPI data resulted in a rebound for both equities and Bitcoin.
Interestingly, despite its initial appearance, the PPI report may have bullish implications for stocks and the crypto market. The Bank of America noted that while PPI exceeded expectations, components contributing to PCE inflation cooled in June, the preferred metric of the Federal Reserve.
Looking forward, Bitcoin’s price currently hovers above $58,000, nearing key technical levels such as the 200-day SMA and EMA, signaling bullish momentum. Additionally, Bitcoin is forming an inverse Head and Shoulder pattern on daily charts, suggesting a potential breakout towards $64,000.
BRC-20 tokens continue to show a strong correlation with Bitcoin, exemplified by ORDI and Stacks’ recent rallies. Similarly, new tokens like 99BTC, associated with the popular crypto education platform 99Bitcoins, are generating substantial interest, having raised $2.5 million in presales.
In the Ethereum realm, anticipation builds around meme coins like WienerAI, which has raised $7.3 million in its ICO. With the imminent launch of spot Ethereum ETFs next week, these coins are poised for significant gains. WienerAI, powered by AI technology and innovative features like staking rewards and AI-enabled trading bots, is expected to launch in early August following its presale conclusion on July 31st.