Concerns spread after the announcement of the U.S. Producer Price Index, causing cryptoassets prices to plummet | CoinDesk JAPAN

• The Producer Price Index (PPI) for July rose by 0.9% month-on-month and 3.3% year-on-year. Both figures significantly exceeded expectations, leading to a decline in expectations for a rate cut by the Federal Reserve in the near future.
• Following the PPI announcement, Bitcoin and Ethereum plummeted, leading the decline in the cryptoassets market.

The Producer Price Index (PPI) for July rose by 0.9%, significantly exceeding the forecast of 0.2% and June’s 0.0%. Year-on-year, it increased by 3.3%, surpassing the expected 2.5% and June’s 2.4%.

Core PPI excluding food and energy also rose by 0.9% in July, significantly surpassing the forecast of 0.2% and June’s 0.0%. Year-on-year, it increased by 3.7%, exceeding the forecast of 2.9% and June’s 2.6%.

Bitcoin (BTC) was already quite far from its all-time high of over $124,000 (approximately ¥17,980,000, based on an exchange rate of ¥145 per dollar) set overnight, but in response to this news, it fell below $119,000. Ethereum (ETH) dropped nearly 4%, reaching $4,550 (approximately ¥660,000). Recently popular altcoins such as Solana (SOL) and XRP also experienced similar declines.

The latest labor market indicators did not lead to an improvement in the situation. The number of new unemployment insurance claims for the week ending August 9 was 224,000, slightly below the expected 228,000. The number of continuing claims remained flat at 1.95 million. With a still tight labor market and strong PPI results, there is an increasing view that the Federal Reserve may maintain high interest rates for a longer period to curb inflation.

According to CME FedWatch, the probability of a rate cut in September, which was previously considered to be 100%, has now decreased to 96% following the latest data.

In traditional markets, US stock index futures fell by 0.5%. The dollar rose, and the yield on US 10-year Treasury bonds increased by 5 basis points to 4.25%.

| Translation & Editing: Rina Hayashi | Image: Shutterstock ｜原文：Crypto Prices Quickly Slide After Troubling U.S. PPI Report