The U.S. Bureau of Labor Statistics released August Producer Price Index data showing final-demand prices rose 0.4% month-over-month, matching forecasts and accelerating the annual PPI to 5.4% from a revised 4.8% in July. Core PPI rose 0.2% monthly versus 0.3% expected, while annual core PPI was 4.6%, in line with projections. Energy was the dominant driver: final-demand goods prices jumped 1.1%, with energy advancing 4.2% and diesel surging 24.1%.
Bitcoin had softened before the release, dropping from resistance around $80,000 to below $78,000, and was trading near $77,700 afterward. The first daily support sits at $76,600, followed by $73,000, while resistance remains at $79,500–$80,000 and $82,400. Major altcoins including Ethereum, XRP and BNB also trended lower ahead of the data.
The report did not settle the Federal Reserve policy debate. CME FedWatch showed a 62.2% probability of a September rate increase, while a Reuters poll found 65 of 93 economists expected the Fed to hold rates at 3.50%–3.75% during the September 15–16 meeting. The 10-year Treasury yield was near 4.85%, its highest since 2023, and oil traded above $100 amid Middle East supply risks. Traders now focus on Friday’s August CPI, expected at 0.4% monthly and 3.4% annually, with core CPI forecast at 0.2%. A stronger core CPI reading could broaden inflation concerns beyond energy and increase pressure on Bitcoin and other risk assets.
