US PPI Could Push Bitcoin From Stable to Bullish
Inflation is softening and consumer prices are dropping, according to new US CPI (Consumer Price Index) data and reports from the FOMC.
Today’s US PPI (Producer Price Index) report could give even more positive news about inflation. Bitcoin (BTC) investors are hoping it will spur a price climb from the embattled crypto token.
After weeks of decline and heavy losses, Bitcoin has started to stabilize. The coin has managed to keep its price point around $57,500 for a few days now, with a current price of $57,111 (BTC/USD).
Bitcoin has trended bearish for much of June and July already, but this new economic data could be the help it needs to start climbing.
Factors That Hold Bitcoin Back
Even though Bitcoin has gained considerably this year, a couple of strong factors have hindered its progress toward new highs and the predicted record-breaking price levels. The biggest factor has been US inflation, which has remained high and refused to soften. We are starting to see some indicators of inflation easing up, especially in recent weeks as US consumer prices have dropped unexpectedly and the Federal Reserve has spoken with mild positivity about inflation.
Bitcoin has been further held back in recent weeks by a number of asset dumps. Government authorities in Germany and the United States have seized millions of dollars of bitcoin from criminal parties and have moved those tokens around, creating some market instability.
On top of that, the now-defunct cryptocurrency exchange Mt. Gox has started to repay its customers who were affected by a crypto hack several years ago. As those millions of dollars are being sent out to crypto wallets, the price of Bitcoin has tanked.
The crypto industry is urging governments to be careful about their movement of recovery tokens, and we have yet to see if the authorities will respond in a way that preserves the Bitcoin price level. Meanwhile, the Mt. Gox repayments are expected to continue for several more weeks.
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