Bitcoin sinks 4% to $20,400 as US producer prices show inflation easing

Bitcoin fell 4%, bottoming astatine $20,400 pursuing quality of the U.S. Producer Price Index (PPI) coming successful amended than expected.

December 2022’s PPI came successful astatine 6.2% year-over-year (YoY,) little than the expected 6.8% rate. The information signaled an easing of inflationary pressure, giving scope for the Fed to dilatory its existent gait of involvement complaint hikes.

The PPI measures changes successful the prices paid by producers and is often taken arsenic an indicator of upcoming user terms data.

Bitcoin tanks

On the merchandise of PPI data, Bitcoin initially moved higher, reaching $21,650 by 14:15 UTC.

However, an hr later, the starring cryptocurrency suffered a crisp sell-off that recovered enactment astatine $20,400. A beardown bounce followed, topping retired astatine $21,140.

Source: BTCUSDT connected TradingView.com

The station Bitcoin sinks 4% to $20,400 arsenic US shaper prices amusement ostentation easing appeared archetypal connected CryptoSlate.