Americas Crypto Daybook: Market Awaits PPI Report for Fed Guidance Post-CPI

By James Van Straten (All times ET unless otherwise stated) Following the unexpected surge in consumer price inflation figures on Wednesday, attention shifts to the producer price index report scheduled for release at 8:30 a.m. Analysts anticipate a year-over-year PPI increase of 3.2%, down from December's 3.3%, with a monthly gain of 0.3%, up from 0.2%. Core PPI, excluding volatile food and energy prices, is expected to reveal underlying inflationary pressures, accelerating to 0.3% from 0% in December, and easing to 3.3% from January last year. Higher-than-expected data could indicate that monetary policy remains too lenient, potentially delaying or eliminating Fed rate cuts this year, contrary to President Trump's preferences. A more restrictive Fed is likely to negatively impact risk assets. Conversely, softer inflation data could weaken the dollar, lower treasury yields, and boost risk assets. In the aftermath of the CPI data, markets experienced volatility. Treasury yields surged to 4.6% before slightly retreating, while the Dollar Index (DXY) mirrored this movement, spiking to 108.5 before falling below 108. Despite the initial downturn, major asset classes rebounded, with bitcoin (BTC), U.S. equities, and gold concluding the session in positive territory. Also on the agenda, Coinbase (COIN) will release its fourth-quarter earnings after market close. Following Robinhood's strong results, expectations are high, and a positive report could provide a boost to the cryptocurrency market. Remain vigilant! Key Events to Watch Upcoming Token Events Conferences: CoinDesk's Consensus is set to take place in Hong Kong on February 18-20 and in Toronto on May 14-16. Use code DAYBOOK to receive a 15% discount on passes. Derivatives Positioning Market Trends: Bitcoin Statistics: Technical Analysis Crypto Equities Performance ETF Flow Updates Spot BTC ETFs: Spot ETH ETFs Source: Farside Investors Overnight Market Flows Chart of the Day While You Were Sleeping In the Ether