Bitcoin Slips Below $62k as U.S. Wholesale Prices Jumped 0.5% in April

TL;DR

• Bitcoin has dipped below the $62k level after a hotter-than-expected US wholesale inflation.

• Altcoins are also experiencing mixed performances as the market remains choppy.

Inflation Data Goes Against Bitcoin

Bitcoin has lost 1% of its value over the last 24 hours as inflation data in the United States continues to affect its performance. At press time, Bitcoin’s price stands at $61,881.

BTC’s poor performance comes after the U.S. Bureau of Labor Statistics on Tuesday, revealed that the Producer Price Index (PPI) rose 0.5% in April. Economists had forecast a smaller 0.3% increase in PPI.

Traders will now be watching the Consumer Price Index (CPI) for clues regarding interest rates. It is highly unlikely that the US Federal Reserve will decrease interest rates soon as inflation remains above the target.

The higher-than-expected wholesale inflation reading could pressure the U.S. central bank to maintain higher interest rates for a longer period. If that happens, risk assets such as Bitcoin could suffer setbacks in the short term. 

With Bitcoin in the red, altcoins have been experiencing mixed performances over the last 24 hours. Ether is up by less than 1% and is trading above $2,900 per coin. Meanwhile, BNB, Solana, Toncoin, and XRP are all trading in the red zone.

With the market’s mixed performance, the total cryptocurrency market cap remains at $2.26 trillion.