Bitcoin holds $82K as US dollar falls to 3-year low and PPI inflation drops sharply

Key Points

  • Bitcoin (BTC) reached highs of $83,245 as US Producer Price Index (PPI) data came in below expectations.
  • The US dollar fell to a 3-year low, potentially signaling a bullish trigger for Bitcoin.
  • Despite positive inflation developments, risk-asset performance like the S&P 500 did not reflect this positivity.

Summary

Bitcoin maintained its value above $82,000 as the US dollar weakened to a three-year low and the Producer Price Index (PPI) inflation dropped significantly. The PPI data, which came in at 2.7% against an expected 3.3%, suggested a cooling in inflation, potentially beneficial for the ongoing US trade war. Despite these positive economic indicators, the performance of risk assets like the S&P 500 did not reflect this optimism, remaining flat or slightly down. Analysts and traders, including Michaël van de Poppe, noted that the lower PPI could be advantageous for President Trump's trade strategy. Additionally, the US Dollar Index (DXY) hitting multiyear lows historically signals a bullish trend for Bitcoin, with some analysts predicting a potential parabolic bull run if the DXY continues to weaken. However, the article cautions that investment decisions should be based on individual research due to the inherent risks involved in trading and investment.

cointelegraph
April 11, 2025
Crypto
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