Yesterday (7/12) all three major US stock indexes rose, with the Dow Jones (DOW) closing above 40,000 points for the second time in history. Investors are digesting the impact of inflation data and successive financial reports. The balance of Bitcoin labeled as the German government's wallet has returned to zero. The selling pressure that investors were previously worried about seems to have officially come to an end. Bitcoin has been consolidating in a range recently.
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TogglePPI increased 0.2% monthly, investors still bet on interest rate cut in September
According to a report by CNBC , the U.S. Bureau of Labor Statistics announced that the producer price index (PPI) increased by 0.2% month-on-month in June, up 2.6% from the same period last year, slightly higher than economists' expectations.
This is contrary to the consumer price index (CPI) released the previous day. The CPI released on Thursday showed that the overall inflation rate has been declining month by month and is currently increasing by 3% annually.
However, the release of PPI data does not seem to affect investors' expectations that the Federal Reserve will start to cut interest rates in September. According to CME Group's FedWatch tool, traders expect that the probability of an interest rate cut of more than one yard in September is 94.1%. The Federal Reserve's most important inflation indicator, the personal consumption expenditures price index (PCE), will be released on July 26.
German government wallet Bitcoin has been reset to zero
According to Arkham data , the Bitcoin wallet labeled as belonging to the German government has been reset to zero, and the 50,000 Bitcoins previously seized from the movie piracy website Movie2K have been gradually transferred to different exchanges and market makers.
German government wallets on Friday transferred the last batch of Bitcoin to wallets with Flow Traders and 139Po (possibly institutional depository and over-the-counter trading services), whose wallet balances have reached zero. The selling pressure that investors were worried about before seems to have officially come to an end.
The sell-off is over, is Bitcoin expected to bottom out?
JPMorgan Chase and Bitfinex have recently issued reports stating that with the end of liquidation activities and selling by short-term holders, the market is close to bottoming out and is expected to rebound in August.
( JPMorgan Chase: Bitcoin liquidation activities end this month, and the market will rebound in August )
Bitcoin fell to $53,485 last week and seems to be showing signs of stabilizing in recent days. The pressure above will first look at the integer level of 60,000.
