Bitcoin Market Reacts as Producer Price Index (PPI) for May Comes in Lower Than Expected

Today, the Bureau of Labor Statistics released the data regarding the Producer Price Index (PPI) for May. On trend with yesterday's consumer prices report, the change in the price of goods sold by manufacturers in the U.S. has risen lower than anticipated.

The Bureau of Labor Statistics is set to release the Producer Price Index (PPI) data for May today, providing insights into changes in the prices of goods sold by manufacturers in the U.S.

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What Happened: Heading to today’s PPI report, analysts polled by the Dow Jones anticipated a 0.2% increase in the PPI's monthly installment. However, the report unveiled a smaller rise of 0.1%. This signals a slowing in the pace of price gains in the manufacturing sector.

Yesterday, consumer prices were also reported to have risen by a lesser percentage point than anticipated for May. This economic indicator is closely watched by investors and policymakers to assess broader economic trends.

Meanwhile, the jobs sector appears to have suffered the largest hit according to today’s Jobless Claims report.

Continuing jobless claims came in above expectations, rising to 1,956K compared to the forecasted 1,910K. This suggests that more individuals remain unemployed rather than quickly reentering the workforce.

Initial jobless claims, on the other hand, came in slightly lower than expected at 242K versus the projected 248K. This indicates fewer new unemployment filings than anticipated.

Bitcoin Price Movement: Bitcoin started off the day trading upwards of $109k, as investors hoped for a $110K breakout. However, despite reports that inflation is not affecting consumers and U.S. manufacturers as much as we thought so far — $BTC failed to break above that psychological zone.

Instead, the asset plunged throughout the day and is currently trading at $105,900. Overall, Bitcoin lost around 2.65% over the last 24 hours, but is still relatively bullish on a weekly timeframe, up by 4.84% during the last seven days.

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