On a monthly basis, PPI showed a drop, one of the first such moves since March 2024. Based on reports, those weaker numbers fed hopes that the Fed could ease policy sooner rather than later, and markets reacted accordingly.
Reports have disclosed that institutional flows and stablecoin liquidity helped lift prices, and that investor positioning shifted toward risk assets after the data.
Market technicians pointed to clear levels. If support near $112,500 breaks, it could open the way to a short pullback. If $115,500 is cleared, buyers may push for higher ranges.
At the same time, some on-chain indicators showed rising transfers into exchanges, a sign that profit taking could be ahead. Reports have disclosed that both demand and supply signals will be watched closely by desks and algorithmic funds.
While PPI cooled, other data could change the picture. Consumer inflation and jobs figures are still to be watched, and those reports can keep the Fed on guard.
Rate cuts are now being priced in by some traders, perhaps as soon as September, but that outcome is not guaranteed. If consumer prices re-accelerate or job strength stays high, easing could be delayed and markets may retrace gains.
According to market commentators, the key near-term items are the upcoming CPI release, monthly jobs data, and Fed commentary. Also important are flows into spot products and the dollar’s direction — a firmer dollar would likely pressure risky assets.
Traders will also keep an eye on how quickly liquidity moves from stablecoins into BTC and ETH, and whether profit-taking appears at the big technical thresholds already mentioned.
Featured image from Meta, chart from TradingView
