Inki Cho
Bitcoin was stable above USD114,000 on Thursday, and is consolidating after Wednesday’s advance was sparked by a surprise decline in US producer prices. The PPI fell 0.1% in August, its first drop in four months, reinforcing expectations of easing inflationary pressures. Attention now turns to the CPI data due later today, with markets braced for a reading of 0.3%. A softer outcome could fuel speculation of a higher probability for a 50bp rate cut at the Fed’s meeting later this month, providing a further boost to risky assets.
ETF flows remain a major tailwind. US spot Bitcoin funds attracted USD 741 million on Wednesday. The cryptocurrency could see more sustained support if ETF inflows remain strong after a period of sporadic outflows. The rising inflows could underscore resilient demand even as investors stay cautious ahead of macro catalysts.
Corporate adoption also continued. POP Culture Group announced the creation of a strategic Bitcoin reserve, disclosing its first purchase of 300 BTC. Meanwhile, Cboe Global Markets confirmed it will launch “continuous futures” for Bitcoin in November, pending regulatory review, a move expected to deepen liquidity and attract more investors.
Cho is Financial Markets Strategist Consultant to Exness
