#July PPI Beats Expectations#

The Inflation Surprise Shook the Markets

In July, the Producer Price Index (PPI) came in at 0.9% on a monthly basis. The expectation was only 0.2%. On an annual basis, it reached 3.3%, the highest level in recent years. Core PPI—i.e., inflation excluding food and energy—was again above expectations at 0.6% month-on-month.

This result cast a shadow over the markets' expectations of "interest rate cuts on the way."

Impact on Crypto: Reaction Instant and Severe
• After testing a new all-time high, Bitcoin quickly pulled back to the $118K region.
• While Ethereum attempted to rise above the $4,700 level, it fell to around $4,500 due to sudden sell-offs.
The instant liquidity and losses were striking.

If BTC stays above $118K, it could sustain the upward trend.
• ETH: A drop below $4,650 could lead to a pullback towards the $4,500 resistance in the short term.

Possible Scenarios
• If the Fed acts cautiously: BTC heads towards $125K, ETH towards $4,900.
• If the market balances: A recovery may be seen after a sideways movement.
• If Inflation Expectations Rise: BTC could test below $118K, while ETH could pull towards $4,600.

is not investment advice and is written for informational purposes.