Hot Inflation Clouds Fed Path, But Crypto Bulls Eye Q4 Liquidity Surge
A hotter-than-expected U.S. wholesale inflation reading has tempered optimism for a September interest-rate cut, but some analysts say the pullback in crypto could be short-lived as liquidity tailwinds build into year-end.
The Producer Price Index rose 0.9% in July, its largest monthly gain in more than three years, with core PPI matching that pace.
The data prompted traders to scale back bets on imminent Federal Reserve easing, pressuring Bitcoin and Ethereum from recent highs.
Bitcoin is down 4.2% to $118,200 on the day while Ethereum has slipped 3% to 4,570, CoinGecko data shows.
“The recent pullback in crypto prices following a hotter-than-forecast reading on core PPI seems to have shaken broader confidence…
