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- The U.S. Bureau of Labor Statistics disclosed that the PPI for final demand decreased by 0.5% in March.
- Bitcoin is currently priced at $30,432, reflecting a 1.5% increase over the past 24 hours according to CMC.
In light of March’s underwhelming Consumer Price Index (CPI) figures, the U.S. Bureau of Labor Statistics announced on Thursday that the PPI for final demand dropped by 0.5% in March. A rise of 0.1% in the PPI was anticipated for March, making the 0.5% decline unexpected.
Year-over-year inflation as indicated by the PPI in March rose by 2.7%, which is below the anticipated 3% increase. PPI inflation saw a 4.9% rise compared to February of the previous year. Adjusted for seasonal variations, the Consumer Price Index increased by 0.1% in March, down from 0.4% in February. Final demand prices (excluding food, energy, and trade services) edged up by 0.1% in March 2023, following a 0.2% rise in February.
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Relaxed Monetary Policy Expected
The PPI for final demand was recorded at 0.4% in both January and February 2023. For the year ending in March, the Bureau of Labor Statistics noted that the Final Demand Price Index increased by 2.7%, not seasonally adjusted.
Simultaneously, Bitcoin and the broader crypto market experienced a surge following this announcement. Bitcoin is currently trading at $30,432, up 1.5% in the last 24 hours. This news also led to a slight uptick in U.S. stock futures, with futures for the Dow and the S&P 500 both rising by 0.17 percent.
This suggests that the U.S. Federal Reserve’s quantitative tightening strategies are yielding the intended results, as both CPI and PPI increased by less than expected. The U.S. Dollar Index (DXY) declined by 0.46 percent following the release of the March PPI data.
The Federal Reserve now possesses ample evidence to consider easing monetary policy in 2023. These macroeconomic indicators may be favorable for the cryptocurrency industry as a whole.
