The U.S. Department of Labor announced that the Producer Price Index (PPI) for August rose 0.4% month-over-month. This figure aligns with market expectations (0.4%). PPI is reflected in the Consumer Price Index (CPI) after a time lag. Cryptocurrencies, classified as risk assets, react sensitively to the release of PPI and CPI, which are inflation indicators and influence the Federal Reserve's (Fed) interest rate decisions. If the two indicators exceed expectations, the Fed's interest rate cut expectations may weaken, and if they fall below expectations, it could be interpreted as a sign of slowing inflation, increasing interest rate cut expectations. Generally, risk assets tend to rise when expectations of increased liquidity due to interest rate cuts grow.
