Cryptocurrency Gains Momentum following U.S. inflation Report
On September 10, the cryptocurrency market experienced a critically important boost, aligning wiht positive economic indicators from the United States. Central to this rally was fresh producer inflation data showing a downturn.
The Bureau of Labor Statistics’ August report revealed a shift, with the headline Producer Price Index (PPI) decreasing from 0.7% in July to minus 0.1% in August. Year-over-year, the PPI settled at 2.8%, down from 3.4%. Some economists anticipate that this trend might influence the upcoming Consumer price Index, currently estimated at around 2.9%.
This promising data fueled speculation of a Federal Reserve interest rate cut as soon as next week. While chances lean toward a modest 0.25% reduction, ING Bank and Standard Chartered analysts suggest a bolder 0.50% cut could be imminent.
- Bitcoin (BTC) climbed 1.1% in the last 24 hours.
- Ethereum (ETH), Binance Coin (BNB), and Solana (SOL) soared by more than 2%.
Besides economic reports, robust tech company performances bolstered investor confidence. Oracle’s impressive earnings saw a 32% jump in stock value, alongside Taiwan Semiconductor’s 34% growth in August sales. Although these entities operate outside the crypto sector, their success fostered enthusiasm for riskier investments, benefiting the cryptocurrency market overall.
As a sign of growing interest, the crypto futures market noted a 2% rise in open interest, totaling over $214 billion. This uptick hints at expanding demand, a favorable signal for cryptocurrency proponents.
