The Producer Price Index (PPI) fell by 0.5%, the lowest reading since April 2020, indicating easing inflation.
This, coupled with a softer Core Consumer Price Index (CPI) of 2.4%, could prompt the Federal Reserve to consider its first rate cut in 2025.
Lower inflation and potential rate cuts create a positive environment for risk assets like cryptocurrencies, as they weaken the U.S. dollar and boost liquidity.
The crypto market has already responded positively to macro easing signals, indicating that a Fed pivot could further drive rallies in digital assets, especially in altcoins and DeFi.