The uncertainty has become evident and the PPI data ended the rise of August in crypto currencies. We talked about Sunday how important the future data is this week. Those who follow the news flow tightly were less affected by the decline because when we share a decline warning with PPI, yet BTC It was over 120 thousand dollars. Now in 118 thousand dollars. So what’s going on? Why do crypto coins fall?
Why do crypto coins fall?
The PPI data came well above the expectation. The monthly increase is 0.9% and even half of it will bring serious problems if the CPI is reflected. Moreover, we are talking about the PCE, which is the inflation indicator of the FED data, and we are talking at every opportunity. In other words, Powell leaned back and had the luxury to say, “The effect of tariffs and the reason for avoiding interest rates at work”.
Crypto currencies still have a lot of reasons for the rise, but it is possible to excuse the latest development for the cleaning of excessive accumulated long positions and test 116 thousand dollars. However, the real problem is that the price of ETH is losing $ 4,100, which means that the resistance test fails.
Although the ETH price declines to $ 4,500, it maintains this level for now. For investors looking for Short Opportunities for Fast Rising Altcoins, short -term sudden rise in short -term rise is not surprising.
Only $ 564 million in the last 1 hour was liquidated, and the 537 million dollars of this were long positions. ETH with Long of 169 million dollars in the liquidation with Long.
PPI AND INTEREST DISCOUNT
Shortly after mentioning the expectation of the BESSENT 50BP interest rate reduction, the PPI data came far above the expectation and September interest rate cuts expectations were inflated down. Yesterday, Goolsbee from Fed said he was worried about the impact of tariffs on inflation and that the labor markets remained significantly strong. Today, Trump does not seem possible for Trump to share in the form of Pow DOWNLOAD INTEREST POWELL ”.
In the PPI report, the increase in the 12 -month period ended in July was the largest since February 2025. The final demand index, except for food, energy and trade services, increased by 0.6 %in July and noted its biggest increase in March 2022 since an increase of 0.9 %. In the 12 -month period ending in July, the final demand prices except food, energy and trade services increased by 2.8 %.
For the first time since January, when tariff concerns in the processed goods index are now fueled. 1 %in January and 0.8 %in July. The price of processed energy products increased by 2.2 %. The processed material index, excluding food and energy, increased by 0.5%. An important part of this item is fed from the change in the increasing diesel fuel index, which increases by 11.8 %.
In other words, more than three quarters of the broad -based increase in July was caused by the final demand services index, which increased by 1.1 %. Final demand goods prices rose by 0.7 %. Machinery and equipment is another factor waiting for an increase in 3.8 %rise in wholesale margins. So this means that we see the effect of tariffs more clearly in the data.
While the tariffs for all countries have been activated in August, the reflections of the tariff effect on PPI data will become even more clear. Before the meeting was held in September, the Fed will decide to see it. If the increase continues, even if the interest rate reduction stops, leaving interest rates constant can turn into a dove for the FED. This is not good for risk markets.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
