Cryptocurrency Prices on August 14: Bitcoin rises 3% to $61K after soft US PPI data

Blue-chip cryptocurrencies Bitcoin and Ethereum surged on Wednesday after softer-than-expected US producer prices data raised hopes for benign consumer price inflation.

As of 1:12 pm IST, Bitcoin (BTC) rose 2.85% over the past 24 hours, trading at $60,948. Ethereum (ETH), the second-largest cryptocurrency by market capitalization, gained 2.65%, trading at $2,724.

U.S. producer prices increased less than expected in July as the cost of services fell by the most in nearly 1-1/2 years amid signs of diminishing pricing power for businesses, evidence of waning inflation pressures that reinforced hopes of an interest rate cut next month.


Traders see about a 53% chance of a 50-basis-point Fed rate cut in September, rising from 50% a day before, according to CME FedWatch Tool.

The U.S. consumer price data for July, due after Indian market hours, is the next major data point investors will closely watch.

"The crypto market saw an uptick as the U.S. PPI data came in lower than expected, which is bullish for the market," the CoinDCX Research Team said. "The focus now shifts to the U.S. CPI data, set to be released today. Notably, during the last CPI data release, the market experienced a significant upside."

Vikram Subburaj, CEO of Giottus, commented, "Bitcoin has reclaimed $61,000 after surging through critical resistance at $60,000. Positive developments with muted US wholesale inflation data and significant net inflows to ETFs have aided in this bullish shift."

Subburaj added, "If BTC holds above $60,000 this week, a strong rally into September is likely, especially with a potential U.S. interest rate cut on the horizon."

The broader cryptocurrency market saw gains across major tokens, including BNB, Toncoin, Dogecoin, Cardano, Tron, Avalanche, Chainlink, and Shiba Inu, which rose by up to 7%.

The volume of all stablecoins is now $60 billion, 93.5% of the total crypto market 24-hour volume, as per data available on CoinMarketCap.

In the last 24 hours, the market cap of Bitcoin, the world's largest cryptocurrency, rose to $1.202 trillion. Bitcoin's dominance is currently 56.22%, according to CoinMarketCap. BTC volume in the last 24 hours fell 19% to $28.8 billion.

"Bitcoin has begun a recovery, climbing back above the $60,000 mark. BTC successfully surpassed resistance levels at $59,500 and $60,000, and it’s now approaching the $61,500 resistance zone. Buyers are actively purchasing at support levels, taking advantage of the dip. However, if BTC struggles to break through the $61,500 mark, it may face another decline, with the next key support level at $59,650," said Edul Patel, CEO of Mudrex.

Also Read: Crypto Gems: Top Crypto Assets To Watch & Buy in August 2024

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of the Economic Times)