Key facts
- US PPI inflation rose 1.3% MoM and 6.3% YoY in September.
- Core PPI increased 0.7% MoM and 4.4% YoY.
- US retail sales rose 0.8% MoM in September.
- Bitcoin fell below its 50-day moving average support.
- XRP price fell to near $1.30.
Bitcoin and XRP prices declined on Thursday as US Producer Price Index (PPI) inflation data for September came in hotter than anticipated, fueling concerns about further Federal Reserve interest rate hikes. The PPI rose 1.3% month-on-month, marking the largest monthly increase since March 2022, and the annual rate surged to 6.3%, significantly above the 5.4% forecast. Core PPI also exceeded expectations. This follows a similar surprise in CPI inflation released the previous day. US retail sales also showed resilience, increasing by 0.8% month-on-month. Bitcoin fell below its 50-day moving average support, while XRP saw a more than 5% drop. Investors are now awaiting commentary from Fed Chair Kevin Warsh later today for further guidance on monetary policy.