- Bitcoin stayed above $61,000 despite higher-than-expected U.S. Producer Price Index (PPI) inflation data.
- The PPI print increased inflationary pressure, sparking debates about the Federal Reserve’s interest rate cuts.
- Traders are monitoring key levels, with $63,900 as potential resistance and $60,200 as critical support.
Bitcoin remained stable around $61,500 on October 11, even as fresh U.S. inflation data sparked concerns. The price reached a new local high of $61,476 on Bitstamp following the release of the U.S. Producer Price Index (PPI). The PPI, which measures the average change in selling prices received by producers, came in higher than expected at 1.8%, compared to the anticipated 1.6%.
This inflationary signal followed a similar uptick in the Consumer Price Index (CPI), which together indicates rising inflationary pressures. Analysts like The Kobeissi Letter criticized the Federal Reserve’s recent decision to cut interest rates by 0.5%, suggesting it was unnecessary given the rising inflation.
Traders Focus on Key Levels Amid Inflation Data
Despite the inflation news, Bitcoin has avoided significant drops, with crypto markets diverging from stock market gains. While stocks continued their upward trend, Bitcoin and altcoins faced some selling pressure. Traders are now closely monitoring key resistance and support levels. Analyst Justin Bennett highlighted $62,000 as a critical point to retest, while trader Anbessa pointed out that reclaiming $63,900 could lead to a breakout, whereas a dip below $60,200 might trigger further volatility.
Inflation Concerns and Fed Rate Decisions
The PPI data had a modest impact on expectations for the Federal Reserve’s upcoming rate decision. CME Group’s FedWatch Tool indicated an 84% chance of a smaller 0.25% rate cut in November, with some expecting no rate changes. As inflation indicators continue to rise, traders are keeping a close eye on how Bitcoin and other risk assets respond to the Fed’s next moves.
