Bitcoin has now corrected the price dip that was caused by the latest crypto misfortune, the FTX collapse that took place at the beginning of November. Early this morning, the price of bitcoin surged to a daily high of $21,564.50 before slightly pulling back to $21,507.97 at the time of writing.
What is behind today’s BTC price surge?
While the general cryptocurrency market is on a bullish trajectory, today’s sudden surge in bitcoin price is largely attributed to this morning’s larger-than-expected decrease in the Producer Price Index (PPI) for the just concluded month of December. The retail sales in December also dropped way below their forecast.
December’s PPI dropped by about 0.5% bringing the year-to-year rate down from 7.3% to 6.2%. The year-over-year rate dropped by about 5.5% against a forecast of a drop of 5.7%.
On the other hand, December retail sales dropped by 1.1% against a forecast drop of 0.8%. Combined with the decline in November, this marks the first time retail sales have dropped back-to-back by more than 1% post the pandemic.
