Bitcoin Holds Steady as US PPI Data Eases Inflation Concerns
Bitcoin maintained its stability following the release of cooler-than-expected US Producer Price Index (PPI) data for June. The BTC/USD pair avoided a decline below $115,000, with market participants now focusing on liquidity levels near $120,000.
Market Responds to Inflation Data
The June PPI showed a 2.3% year-on-year increase, coming in 0.2% below forecasts. This contrasted with the previous day’s Consumer Price Index (CPI) report, sparking discussions among analysts about the Federal Reserve’s potential actions. A July rate cut appears unlikely despite the easing inflation.
Liquidity Levels in Focus
Traders are closely monitoring Bitcoin‘s price movements for potential liquidity opportunities. Exchange order-book liquidity continues to influence short-term price action, with notable ask concentrations between $119,500 and $120,500.
Key Takeaways
- Bitcoin price remains stable below critical liquidity thresholds
- US PPI data provides relief with cooler inflation figures
- Market expectations for Federal Reserve rate cuts remain unchanged
- $120,000 liquidity zone emerges as key price target
