Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD retreated near $17,000 after breaching the level overnight.

The pair reacted poorly to the US Producer Price Index (PPI) data, which although higher than expected, still beat the previous month’s readings.

Michael van de Poppe, founder and CEO of trading firm Eight, responded: β€œAn overreaction to the producer price index, which is down significantly from last month, but lower than expected.”

Van de Poppe, like others, noted that the core of the macro signals will come next week in the form of the November CPI print.

He added, “The CPI next week is the big trigger, just as it was earlier this month.”

QCP Capital continued trading, CPI may be a pivot point, as if it continues its downward trend, markets may get stronger conviction about lower inflation as we welcome the new year.

The Federal Open Market Committee (FOMC) meeting days later, where policymakers decide to raise interest rates, should add fuel to the fire.

QCP wrote in a market update:

At the FOMC, Fed members will release their updated forecasts for inflation and interest rates. Markets will focus on where they expect inflation next year, as well as where they see rates in 2023 and 2024. Those two events are the last remaining hurdles to an even higher rally. end of the year.”
Analysts conceded that if the CPI disappoints, it will likely “negate” the rally in stocks so far. A 50 basis point rate hike had a 77% chance of happening, according to CME Group’s FedWatch tool.

Federal goal rate odds chart. Source: CME Group
The US dollar is taking a break
US stocks were flat after the first hour of trading, with the PPI failing to make a significant impact on performance.