Bitcoin rebounded to as high as $70,000 after October's PPI inflation data came in below expectations. Crypto traders pared back bets on a 50 bps Fed rate hike in December, though a 25 bps hike remains the expected outcome.
Bitcoin rebounded to as high as $70,000 from a low of around $69,000. The move followed the October PPI inflation report, which came in below expectations.
Bitcoin still trades down on the day
The leading crypto trades at around $69,800, down more than 3% on the day, according to TradingView data. According to the U.S. Bureau of Labor Statistics, the index rose 6.5% year over year in October, below expectations of 6.6%.
On a monthly basis, the index rose 0.3%, below expectations of 0.4%. Core PPI came in line with expectations at 0.3% month over month and 5.0% year over year.
CoinGape calls the data a positive for Bitcoin and the broader crypto market. It follows CPI data earlier this week that came in above expectations, raising forecasts of a potential 50-basis-point December Fed rate hike.
However, other factors also pressure crypto, including the recent decline in the stock market, particularly for AI stocks. MSCI has also decided to remove BTC treasury firm Strategy from its global indexes, which raises concerns about what this could mean for the company and its treasury strategy.
Traders cut odds of a 50 bps hike
Data from Polymarket shows a 6% chance the Fed will hike rates by 50 bps next month, down from as high as 10%.
Yet the Fed is still expected to raise rates by at least 25 bps at next month's FOMC meeting. Polymarket data shows a 92% chance of a 25 bps hike after the meeting.
Source: CoinGape
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