Bitcoin Dips on Weaker Than Expected US Wholesale Prices
Bitcoin fell 1.3% to $102,655 following a 0.5% drop in the Producer Price Index (PPI) for April, contrary to expectations of a 0.2% rise. The annual PPI increase was 2.4%, with core PPI declining 0.1%, marking its first drop since April 2020. Ethereum decreased by 2.2%, while Solana and Avalanche dropped 1.7% and 2.1%, respectively. The PPI decline was driven by a 0.7% fall in services, particularly in machinery and vehicle wholesaling. Analysts noted that the PPI is not a significant catalyst for Bitcoin's direction. Attention is now on Fed Chair Jerome Powell's upcoming remarks, which could influence market sentiment. Powell reiterated the Fed's commitment to a 2% inflation target and hinted at potential adjustments in communication strategies. Investors are awaiting the May 30 release of the PCE index for further insights on Fed policy.
