The U.S. November PPI inflation came in hot, well above expectations, signaling that inflation in the U.S. is rising. Bitcoin climbed above the psychological $95,000 level despite the bearish inflation reading.
U.S. PPI Inflation Comes In At 3% Above Expectations
Bureau of Labor Statistics data show that the Producer Price Index rose 3% year-over-year (YoY) in November, above expectations of 2.7%, marking the highest level since July 2025. Month-over-month (MoM), the index rose to 0.2%, in line with expectations.
Meanwhile, Core PPI inflation rose to 3.5%, way above expectations of 2.7%, while it increased 0.0%, below estimates of 0.2%. The macro data indicate that inflation in the U.S. is rising, contrary to the CPI reading.
As CoinGape reported, the December CPI inflation data came in at 2.7% YoY in line with expectations, while the core data came in at 2.6%, below expectations of 2.7%. The PPI data is notably bearish for the crypto market, supporting the case for the Fed to hold rates steady as inflation continues to run well above their 2% target.
Bitcoin rose despite this bearish inflation data, climbing above the psychological $95,000 level. At press time, the flagship crypto is trading at around $95,500, according to TradingView data.
Source: TradingView; Bitcoin Daily ChartCoinGape had reported earlier in the day how Bitcoin rose to as high as $96,000, marking a new yearly high for the crypto asset. BTC rose to this level on the back of large inflows into the ETFs and soft CPI data. However, the PPI data threatens to halt this rally as market participants weigh its implications for rate cuts this year.
The December PPI inflation report will be released on January 30, providing a clearer picture of producer prices in the U.S. It is worth noting that Fed officials had warned that inflation could trend higher this year due to the Trump tariffs. However, the recent macro data have so far provided mixed signals on inflation in the U.S.
Source: https://coingape.com/u-s-november-ppi-inflation-rises-to-3-bitcoin-unchanged/
