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513 million Bitcoin (BTC) in 24 hours, here’s what will happen
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The market is on track to chart a new growth course following the situation publication of the US Producer Price Index (PPI) for May. This data has a major effect on the broader traditional market, as well as Bitcoin and the crypto ecosystem.
Bitcoin Reaction to US PPI Data
The PPI reading is one of the main economic data points used to measure the impact of inflation on the world’s largest capital market. According to the data released, the monthly PPI reading is -0.2%, compared to the previous reading of 0.5%.
This better-than-expected 0.1% figure implies as much Federal Reserve Monetary policies, in terms of keeping inflation stable, have worked overall. The upside could be felt with a recovery in risk assets like Bitcoin.
At the time of writing, the digital currency maintained its bearish decline, falling 3.76% over the past 24 hours to $67,351. This is a major derailment from the slightly bullish momentum from earlier in the week, when the coin made forceful moves to clear the $70,000 price level.
According to the current outlook, the digital currency could react negatively to the news, as a stronger PPI means a resilient economy, which gives corporate investors further incentive to choose traditional assets over risky ones.
Bitcoin ETF catalyst
While the current sentiment from US PPI data may not be favorable for Bitcoin, the impact of Spot ETFs trading could change the narrative overall.
With spot Bitcoin ETFs actively trading in the US, UK, Canada and recently Hong Kong and Australiathere are enough avenues to buy the coin and drive the price up in the long term.
Despite the drop, more than 513 million Bitcoins, or $34,291,565,528, were traded in 24 hours with a jump of 17%. This is an indication of a bullish turn that could contribute to the obstacle of BTC’s recovery.
About the author
Goffredo Beniamino
Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for cryptocurrencies was born when, as a former banker, he discovered the clear advantages of decentralized money compared to traditional payments. With his extensive experience covering various aspects of Web3, Godfrey’s articles have been published in Blockchain.news, Cryptonews, and Coingape, among others.