U.S. Producer Price Index (PPI) for January rose 0.2%, exceeding expectations, indicating that inflationary pressures persist. The year-over-year increase reached 3%. This data, which is higher than expected, suggests that the Federal Reserve may maintain high interest rates for a longer period, thereby boosting the US dollar exchange rate. This outlook typically reduces speculative appetite and puts pressure on risk assets, including cryptocurrencies. Although Bitcoin is often seen as an inflation hedge, tightening financial conditions could lead to short-term market volatility.
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U.S. Producer Price Index (PPI) for January rose 0.2%, exceeding expectations, indicating that inflationary pressures persist. The year-over-year increase reached 3%. This data, which is higher than expected, suggests that the Federal Reserve may maintain high interest rates for a longer period, thereby boosting the US dollar exchange rate. This outlook typically reduces speculative appetite and puts pressure on risk assets, including cryptocurrencies. Although Bitcoin is often seen as an inflation hedge, tightening financial conditions could lead to short-term market volatility.