Bitcoin rebounds toward $70,000 after cooler US PPI reading

The US Producer Price Index rose 0.3% in October, below economists’ 0.4% forecast. Annual producer inflation reached 6.5%, up from 6.3% in September and above expectations of 6.6%. The monthly increase was much slower than September’s revised 1.4% rise.

Bitcoin’s initial move higher after the November 13 release triggered about $39 million in short liquidations within an hour, according to CoinGlass data. The rebound followed a rough session in which Bitcoin fell below $69,000 to its lowest level since August, while Ethereum dropped below $2,000. More than $1.4 billion in leveraged crypto positions were liquidated over 24 hours; about 83% of the $1.42 billion total involved traders betting prices would rise, CoinGlass figures cited by BeInCrypto showed.

Swyftx lead analyst Pav Hundal had said ahead of the report that softer inflation could weaken the dollar and ease selling pressure on Bitcoin. “A softer reading could start the dollar unwind and ease the selling bias on bitcoin,” he wrote in a November 12 market note. After the release, US stock futures rose, while the dollar weakened and Treasury yields eased.

The broader inflation picture remains a concern. Goods prices rose 0.5% in October, largely on food and basic organic chemicals, while services prices increased 0.2% for a fifth straight month. Core PPI, excluding food and energy, rose 0.3% month over month and held at 5% annually. Investors also considered October consumer inflation, which increased 0.4%, above the 0.3% forecast. Reuters reported that markets remained divided over whether the Fed would raise rates by 25 or 50 basis points in December. Its benchmark rate stood at 3.75% to 4.00% after the October meeting.

BTSE Chief Operating Officer Jeff Mei warned a 50-basis-point increase could deepen crypto losses. Market pressures also included a $14.2 billion contraction in stablecoin supply over 30 days through November 9, identified by Glassnode, and net withdrawals on November 11 of $299.8 million from US spot Bitcoin ETFs and $144.8 million from Ethereum funds, according to Farside Investors.