Key Takeaways
- • Bitcoin edged up 0.5% to $82,080.5 by 17:40 ET (21:40 GMT) on Thursday, according to Investing.com, as a sharp rally in U.S. Treasuries lifted risk sentiment despite hotter-than-expected inflation data.
- • U.S. September headline PPI rose 1.3% M/M, the largest monthly increase in four-and-a-half years, versus consensus of 0.3%; on a Y/Y basis, headline PPI climbed 6.3%, the largest annual gain since December 2022.
- • Core PPI advanced 0.7% M/M and 5.0% Y/Y, well above consensus of 0.3% and 4.4%, reinforcing concerns that inflation remains stubborn.
- • The 10-year Treasury yield fell 12.8 basis points to 5.061%, while the 30-year slid 4.5 basis points to 4.757%, as bonds regained safe-haven status amid concerns over AI-related corporate debt issuance.
- • Altcoins largely tracked Bitcoin higher, with the second-largest cryptocurrency up 1.7% to $2,461.72.
Summary
Bitcoin ticked up on Thursday, trading last at $82,080.5, as risk assets broadly benefited from a sharp rally in the U.S. bond market, according to Investing.com. The move came despite a significantly hotter-than-expected U.S. producer price index (PPI) report, which would typically weigh on speculative assets such as cryptocurrencies in a higher-rate environment.
The Bureau of Labor Statistics reported that headline PPI rose 1.3% month-over-month in September, the largest monthly increase in four-and-a-half years, against economist expectations of 0.3%. On a year-over-year basis, headline PPI climbed 6.3%, compared with an estimate of 5.3% and August's 5.6% rise. Core PPI, which excludes food and energy, advanced 0.7% M/M and 5.0% Y/Y, versus consensus of 0.3% and 4.4%. The report followed a similarly hot consumer price index release the previous day, with both reports showing an outsized contribution from energy prices.
Other data pointed to resilient activity. The U.S. Census Bureau said retail sales rose 0.8% M/M in September to $745 billion, beating consensus of 0.3% but decelerating from August's revised 1.3% gain. Initial jobless claims for the week ending October 10 rose to 199,000, in line with expectations, while the four-week moving average edged up to 198,500, remaining near its lowest levels since October 2022. Taken together, the data pointed to persistent inflation, steady consumer spending and a stable labor market, conditions typically associated with central banks holding rates steady or tightening policy.
Bitcoin's resilience reflected a decline in Treasury yields. The 10-year yield slumped 12.8 basis points to close at 5.061%, and the 30-year slid 4.5 basis points to 4.757%. Bonds had recently been unfavorable for investors, with a selloff driving yields to multi-decade highs, but they have regained safe-haven appeal amid growing concern over the large volume of debt companies are issuing to fund artificial intelligence infrastructure buildouts.
Broader crypto prices were largely higher, tracking Bitcoin. The second-largest cryptocurrency climbed 1.7% to $2,461.72, while several other major tokens gained between 0.2% and 1.2%. Among memecoins, one token slipped 0.3% while another added 0.1%.
The Bureau of Labor Statistics reported that headline PPI rose 1.3% month-over-month in September, the largest monthly increase in four-and-a-half years, against economist expectations of 0.3%. On a year-over-year basis, headline PPI climbed 6.3%, compared with an estimate of 5.3% and August's 5.6% rise. Core PPI, which excludes food and energy, advanced 0.7% M/M and 5.0% Y/Y, versus consensus of 0.3% and 4.4%. The report followed a similarly hot consumer price index release the previous day, with both reports showing an outsized contribution from energy prices.
Other data pointed to resilient activity. The U.S. Census Bureau said retail sales rose 0.8% M/M in September to $745 billion, beating consensus of 0.3% but decelerating from August's revised 1.3% gain. Initial jobless claims for the week ending October 10 rose to 199,000, in line with expectations, while the four-week moving average edged up to 198,500, remaining near its lowest levels since October 2022. Taken together, the data pointed to persistent inflation, steady consumer spending and a stable labor market, conditions typically associated with central banks holding rates steady or tightening policy.
Bitcoin's resilience reflected a decline in Treasury yields. The 10-year yield slumped 12.8 basis points to close at 5.061%, and the 30-year slid 4.5 basis points to 4.757%. Bonds had recently been unfavorable for investors, with a selloff driving yields to multi-decade highs, but they have regained safe-haven appeal amid growing concern over the large volume of debt companies are issuing to fund artificial intelligence infrastructure buildouts.
Broader crypto prices were largely higher, tracking Bitcoin. The second-largest cryptocurrency climbed 1.7% to $2,461.72, while several other major tokens gained between 0.2% and 1.2%. Among memecoins, one token slipped 0.3% while another added 0.1%.
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