Bitcoin (BTC) reached monthly highs above $76,000 on Tuesday as US inflation data continued to buoy risk assets.
Key points:
Bitcoin upside continues as bulls target $76,000 — the highest price since early February.
US PPI inflation remains below market expectations despite the war in Iran having no end in sight.
Bitcoin traders stay risk-off on overall market strength.
Bitcoin tops $76,000 amid fears that “inflation is back”
Data from TradingView showed new local highs of $76,038 on Bitstamp — Bitcoin’s best performance since mid-March and on track to hit a two-month record.
BTC/USD one-day chart. Source: Cointelegraph/TradingView
The March print of the Producer Price Index (PPI) came in below expectations despite the US-Iran war.
“On an unadjusted basis, the index for final demand rose 4.0 percent for the 12 months ended in March, the largest 12-month advance since increasing 4.7 percent in February 2023,” an official statement from the US Bureau of Labor Statistics (BLS) noted.
“The March rise in final demand prices can be attributed to a 1.6-percent advance in the index for final demand goods. Prices for final demand services were unchanged.”
Markets had expected a 4.7% year-on-year increase, with a 1.1% month-on-month jump — but it ultimately came in at 0.5%.
US PPI one-month % change. Source: BLS
Despite this, reactions were hawkish, noting that inflation was showing a clear uptrend overall.
“We are now officially seeing inflation metrics in the US that are at 4% or higher,” trading resource The Kobeissi Letter responded on X.
“Inflation is back.”Fed target rate probabilities (screenshot). Source: CME Group
Correspondingly, markets kept bets of interest-rate cuts from the Federal Reserve firmly at the end of next year, per data from CME Group’s FedWatch Tool.
Bitcoin’s 21-week trend line is a line in the sand
Among traders, BTC price action continued to cause suspicion.
Related: Oil price surges 8% on Iran tensions: Five things to know in Bitcoin this week
CryptoReviewing, the pseudonymous cofounder of the trading community Wealth Capital, noted that the move to $75,000 had triggered a…
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