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CoinTelegraph 2025-04-11 16:08:26

Bitcoin holds $82K as US dollar falls to 3-year low and PPI inflation drops sharply

Bitcoin ( BTC ) sought higher levels around the April 11 Wall Street open as the week’s final US inflation data gave bulls hope. BTC/USD 1-hour chart. Source: Cointelegraph/TradingView Analyst: PPI undershoot “great” for US trade war Data from Cointelegraph Markets Pro and TradingView showed BTC/USD reaching highs of $83,245 as US Producer Price Index (PPI) data came in below expectations. The Index came in at 2.7% versus the anticipated 3.3%, while the core PPI print also surprised to the downside. An official news release from the US Bureau of Labor Statistics (BLS) added: “In March, over 70 percent of the decrease in the index for final demand can be traced to prices for final demand goods, which fell 0.9 percent. The index for final demand services declined 0.2 percent.” US PPI for final demand. Source: BLS Reacting, trading resource The Kobeissi Letter was among those noting the rapid pace at which US inflation appeared to be slowing. “We just saw the first month-over-month decline in PPI inflation, down -0.4%, since March 2024,” it told followers in part of a post on X. “Both CPI and PPI inflation are down SHARPLY.” S&P 500 4-hour chart. Source: Cointelegraph/TradingView Risk-asset performance, however, failed to reflect the notionally positive inflation developments. The S&P 500 was 0.2% lower on the day, while the Nasdaq Composite index was flat. As Cointelegraph reported , after stocks fell precipitously the day prior despite bullish inflation numbers, commentators explained that macro data was helping to fuel the ongoing US trade war. Continuing, crypto trader, analyst and entrepreneur Michaël van de Poppe saw a repeat playing out post-PPI. “PPI comes in significantly lower. That's great for Trump and his strategy,” he argued , referring to trade tariffs implemented by US President Donald Trump. “The only thing that needs to be resolved is the on-going Trade War, but the ingredients are building up.” Bitcoin gets key bullish dollar trigger Another macro development failing to provide its standard risk-asset tailwind came in the form of multiyear lows in US dollar strength. Related: Bollinger Bands creator says Bitcoin forming 'classic' floor near $80K The US Dollar Index (DXY), which measures the dollar against a basket of US trading partner currencies, fell below the psychological 100 mark for the first time since 2022. US dollar index (DXY) 1-week chart. Source: Cointelegraph/TradingView As Cointelegraph reported , long-term lows on DXY have historically sparked a delayed BTC price bull run. “Traditionally, DXY going down is very bullish for $BTC, we now have a massive bearish divergence for DXY, which may suggest it goes to 90,” popular crypto analyst Venturefounder observed in part of an X post on the topic this week. “Last 2 times this happened triggered a Bitcoin parabolic bullrun in final phase of the bullmarket (lasting 12 months).” US Dollar Index (DXY) vs. BTC/USD chart with RSI data. Source: Venturefounder/X An accompanying chart examined relative strength index (RSI) data for the DXY monthly chart, showing it retesting a downward-sloping trend line as support from above. This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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