US Producer Prices Due Friday Test Bitcoin After September’s 1.3% Surge

The U.S. Producer Price Index for October is due on Friday, November 13, at 8:30 a.m., according to the Bureau of Labor Statistics release schedule. Crypto Insiders, citing Investing.com consensus data, reported that economists expect headline PPI to rise 0.4% month on month, down from 1.3% in September. Core PPI, which excludes food and energy, is forecast to rise 0.3%, down from 0.7% in September.

Crypto Insiders noted that September’s headline gain was the largest monthly increase since March 2022, with goods prices up 2.6% and energy within goods up 9.1%. It also pointed out that Tuesday’s consumer price report came in 0.1 percentage point above forecast for both headline, at 0.4%, and core, at 0.3%.

The producer-price data matters because markets are pricing Fed tightening. Bitcoin Magazine reported on Thursday that fed funds futures priced about 29 basis points of hikes in December, while CoinDesk said markets were pricing a 25 basis point hike at the December 9 meeting. Crypto Insiders added that Fed Governor Christopher Waller has said core inflation of about 0.3% or higher could be a reason to consider a larger 50 basis point hike in December.

Bitcoin entered the release weaker. Crypto.news reported that it fell below $70,000 early on Friday for the first time since August. This article was written before the release, and the actual PPI figures were not available.

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Sources:

• Crypto Insiders: Bitcoin wacht vrijdag nieuwe Amerikaanse inflatietest

• BLS: Producer Price Index release schedule

• crypto.news: Bitcoin price crashes below $70K as crypto liquidations hit $1.2B