Bitcoin gains 0.6% to $63,728 as US PPI cools to 4.7%

Bitcoin rose 0.6% to $63,728 after July US producer prices rose 4.7% year-over-year, below the 4.9% consensus forecast and easing pressure on the Federal Reserve to keep rates restrictive.

The headline Producer Price Index was unchanged month-over-month in July, versus expectations for a 0.2% gain, according to data from the Bureau of Labor Statistics. Core PPI, excluding food and energy, rose 0.2% monthly — the smallest gain since June 2015 — and 4.2% annually, in line with estimates. Final-demand goods prices declined 0.7%, led by a 5.7% drop in gasoline, while services prices rose 0.2%. Energy prices fell 3.1% for the month.

"Maybe we'd get there, but if it takes another three to four years to get there, is that OK? Is that enough?" Cleveland Federal Reserve Bank president Beth Hammack said at an event in Kettering, Ohio, questioning whether recent cooler data prints would bring inflation to the Fed's 2% target. Hammack was one of three officials who voted for a 0.25% rate hike at the July FOMC meeting.

The cooler producer inflation data follows Wednesday's CPI print, which matched expectations at 3.4% annually, and has strengthened the case for the Fed to hold rates at 3.50-3.75% at the September FOMC meeting. CME Group's FedWatch Tool showed 65.6% odds of a rate hold. US equities also gained on the data, with the S&P 500 up 0.87% and the Nasdaq Composite up 0.94% at the Wall Street open.

Bitcoin's move comes as traders weigh a less hawkish Fed against lingering inflation pressures — prices excluding food, energy and trade services rose 0.4% in July and were 4.7% higher year-over-year. Glassnode cofounder Rafael Schultze-Kraft flagged $61,000 as a potential flashpoint, noting that long liquidation risk has built up around that level in recent weeks. "If we get there, I'd expect forced selling to add momentum to the downside," he wrote on X.

For Bitcoin, the near-term path hinges on whether the Fed's September meeting delivers a hold or a hike. A hold would likely support risk assets, while a surprise hike could push BTC toward the $61,000 liquidation zone. The next inflation data point — the July PCE report, due later this month — will provide further clarity on whether the cooling trend holds.

This article is for informational purposes only and does not constitute investment advice.