Bitcoin is consolidating around the $120,000 mark following the release of cooler-than-expected US Producer Price Index (PPI) data, though the market outlook for Federal Reserve interest rate cuts remains largely unchanged.
The June PPI report showed inflation at 2.3%, falling short of analyst forecasts. While this data point contributed to a cooling of broader market sentiment, its impact on expectations for Federal Reserve monetary policy easing was minimal, leaving anticipated interest rate cut odds unaltered significantly.
Current Bitcoin price action sees BTC/USD hovering at the $119,000 level. Technical analysis highlights liquidity clusters between $119,500 and $120,500 as potential targets, likely acting as magnets for triggering leveraged position liquidations.
Supporting potential upward momentum are continued institutional inflows into spot Bitcoin ETFs. Key technical support is also identified around $114,300 to $115,600, corresponding to gaps in CME Group Bitcoin futures markets.
The divergence between cooling PPI figures and the prior Consumer Price Index (CPI) reading continues to fuel debate among analysts concerning the precise trajectory of Federal Reserve monetary policy in the months ahead.
Market participants are maintaining close watch on critical liquidity zones for BTC/USD and monitoring further signals from the Federal Reserve, viewing these factors as key determinants of Bitcoin’s near-term price direction.