Here’s How Bitcoin Reacted to the June PPI Report

Bitcoin showed a brief bullish reaction to the June U.S. Producer Price Index (PPI) release at 12:30 UTC, but the move quickly lost steam as traders digested the broader implications of the data.

At the moment of the PPI release on July 16, Bitcoin was trading near $117,600. Over the following two hours, the price jumped sharply to a high of $119,400, gaining over $1,800 in a swift move. However, the rally proved short-lived. Sellers stepped in above the $119K level, pushing BTC back toward $118,400 by 14:22 UTC, as seen in the 2-hour Coinbase chart.

The initial spike was likely driven by the market’s interpretation of the flat PPI reading. The headline PPI showed no month-over-month change in June, suggesting a potential cooldown in producer-side inflation pressures. This reinforced hopes that the Federal Reserve may have more flexibility to cut rates later in the year.

However, a deeper look into the report painted a more complex picture. While services prices declined by 0.1%, goods inflation remained firm, especially in energy and core goods categories. Annual PPI still rose 2.3%, and core PPI (excluding food, energy, and trade) held steady at 2.5%—indicating that inflation remains sticky on a yearly basis.

READ MORE:

How Can You Tell When it’s Altcoin Season?

As a result, Bitcoin’s brief rally met resistance, reflecting cautious investor sentiment. While the flat PPI print opened a window for optimism, it wasn’t enough to drive a sustained breakout above $120K. The market remains sensitive to any data that could sway Fed policy expectations, and with inflation signals still mixed, BTC traders appear unwilling to chase price aggressively.

For now, Bitcoin continues to hover around $118,400 as the broader macroeconomic picture remains uncertain.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.