Bitcoin
513 million Bitcoin (BTC) in 24 hours, here’s what’s coming on U.Today
U.Today – The market is on track to chart a new course of growth following the release of the May US Producer Price Index (PPI). This data has an important effect on the broader traditional market as well as the crypto ecosystem.
Bitcoin Reaction to US PPI Data
The PPI reading is one of the main economic data used to measure the impact of inflation on the world’s largest capital market. According to the data released, the monthly PPI reading is -0.2%, compared to the previous reading of 0.5%.
This better-than-expected 0.1% figure implies that the Federal Reserve’s monetary policies, with regard to maintaining stable inflation, have generally worked. The upside can be felt with a rally in risky assets like Bitcoin.
At the time of writing, the digital currency has maintained its bearish slide, dropping 3.76% in the last 24 hours to $67,351. This is a major derailment from the moderately bullish momentum from earlier in the week when the coin made emphatic moves to surpass the $70,000 price level.
According to the current outlook, the digital currency may be reacting negatively to the news as a stronger PPI means a resilient economy, which gives corporate investors an extra incentive to choose traditional assets over risky assets.
Bitcoin ETF Catalyst
While current sentiment from US PPI data may not be favorable for Bitcoin, the impact of spot ETF trading could change the overall narrative.
With spot Bitcoin ETFs actively trading in the United States, the United Kingdom, Canada, and recently Hong Kong and Australia, there are enough avenues to buy the currency and increase the price over the long term.
Despite the reduction, more than 513 million Bitcoins, or US$34,291,565,528, were traded in 24 hours, with a jump of 17%. This is an indication of a bullish turnaround that could contribute to hindering BTC’s revival.