Bitcoin eyed higher price levels as the US inflation data for April 11 provided optimism for market bulls.
Analyst: Lower-than-expected PPI is “positive” for the US trade conflict According to TradingView data, Bitcoin (BTC/USD) reached a high of $83,245 after the PPI data came in lower than expected.
The PPI for March came in at 2.7%, under the forecasted 3.3%, with core PPI also coming in below expectations.
The US Bureau of Labor Statistics (BLS) confirmed this in a release, stating:
“March saw a 0.9% drop in prices for final demand goods, contributing to over 70% of the decrease in the overall index. The final demand services index also fell by 0.2%.”
The Kobeissi Letter, a trading resource, was among those highlighting how rapidly inflation seemed to be slowing in the US.
“We just saw the first monthly decline in PPI inflation, down by -0.4%, since March 2024,” they posted on X.
Despite the positive inflation data, risk-assets didn’t show typical bullish responses. The S&P 500 dropped by 0.2%, while the Nasdaq Composite remained flat.
After a sharp decline in stocks the previous day, some analysts suggested that macroeconomic data was fueling the ongoing US trade war.
Continuing with the analysis, crypto trader Michaël van de Poppe commented on the implications of the PPI data.
“PPI came in significantly lower. That’s great for Trump’s strategy,” he said, referring to the trade tariffs imposed during Donald Trump’s presidency.
“The main issue now is the ongoing trade war, but things are lining up.”
Bitcoin eyes a key bullish signal from the weakening dollar A further macroeconomic factor impacting risk assets was the US dollar’s fall to multi-year lows.
The US Dollar Index (DXY), which tracks the strength of the dollar against a basket of major currencies, dropped below the key 100 mark for the first time since 2022.
Historically, such drops in DXY have preceded significant Bitcoin price increases.
“DXY trending downward is historically bullish for Bitcoin,” noted crypto analyst Venturefounder in a post on X. “We’re seeing a strong bearish divergence for DXY, which could lead it to 90.”
He added, “The last two times this occurred, Bitcoin experienced a parabolic bull run during the final phase of the previous bull market (lasting about 12 months).”
A chart illustrating the DXY’s relative strength index (RSI) showed it testing a downward trend line as support.
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