How Bitcoin and Crypto Prices Will React to FOMC Minutes, CPI Inflation – is the Market Bottom Near?

cryptonews.com:

Bitcoin, and crypto prices more generally, have been treading water this week, but that could change from today as producer price index (PPI) inflation data and FOMC minutes are released.

First up to disturb the market from its slumber is the US PPI data, a measure of inflation at the factory gate. 

Any sign of cooling will be treated as confirmation of the need for the Fed to ease off on interest rate rises. Such an outcome would light a fire under stocks and crypto prices.

Conversely, if producer price inflation continues to heat up, then expect risk assets to resume their sell-off. 

Well the data is in and Core PPI month-on-month rose at double the level expected, by 0.4% as opposed to the 0.2% forecast. 

Meanwhile, year-on-year headline PPI was 8.5%, hotter than the 8.4% forecast, although that is down from 8.7% in the previous month (August) – and that last point seems, initially, to be the key takeaway for the market.

As such, reaction so far is fairly positive – Bitcoin remains largely unchanged, but could move higher if equities can pick up some positive momentum. 

The S&P 500 is up 0.2% to 3595, the Dow 61 points higher and the Nasdaq 0.38% the better at 10468. 

Elsewhere, the UK 30-year government bond sell-off has picked up, with yields accelerating upwards 23 basis points to 5.00% (more on the UK financial crisis below)

But the PPI data is the warm-up act for the main show, which is the US consumer price index (CPI) inflation data release on Thursday.

However, even before those hotly anticipated numbers are released, market participants will be provided with plenty to ruminate over when the Federal Open Market Committee (FOMC) releases the minutes from its 21 September meeting at 18:00 UTC.

The minutes will likely show