PPI Report Triggers Bearish Sentiment, But Bitcoin Short-Term Holders Signal Potential Uptrend

The Producer Price Index (PPI) report for September showed that the cost of goods and services rose 0.4% for the month, in line with expectations.

However, on an annual basis, the PPI was at 5.4%, 0.1% higher than expected and still well above the Fed's target of 2% inflation target.

This led to a bearish sentiment that transferred from the stock market to the crypto markets, causing Bitcoin to decline by 2.2% on Thursday, falling to a low of $76,464 before bouncing back to $77,249 at the time of writing.

The decline was mirrored across the crypto sphere, sparking $363 million in long liquidations on Thursday.