Cooling PPI lifts crypto markets as Bitcoin trades above 113,000 USD

A cooler-than-expected U.S. Producer Price Index (PPI) report has reignited hopes for future interest rate cuts, giving crypto markets a noticeable boost. Bitcoin climbed past $113,000 as traders and institutions shifted capital toward risk assets, responding to signs of easing inflation.

Market reaction to the PPI

Softer PPI figures reduce the likelihood of further rate hikes and increase expectations of monetary easing ahead. This macroeconomic shift encouraged fund managers and traders to increase exposure to Bitcoin and other cryptocurrencies, reflecting how traditional economic indicators continue to influence capital flow into digital assets.

Technical significance of the 113,000 USD level

The $113,000 mark represents both a psychological and technical barrier for Bitcoin. A sustained break above this level could signal stronger bullish conviction, while a rejection might trigger liquidations and short-term selling. Market depth and whale activity will play key roles in determining whether this momentum holds.

Institutional flows and asset competition

Institutional products—including ETFs and OTC desks—continue to rebalance between Bitcoin and Ethereum. Bitcoin remains the preferred store of value, while Ethereum attracts interest due to its utility in DeFi and scaling ecosystems. This dynamic highlights how different digital assets serve varied roles within investment portfolios.

Regulatory and concentration risks

Despite positive price action, regulatory uncertainty continues to slow steady institutional adoption. Additionally, large holders and concentrated liquidity can lead to sharp price reversals. Over-reliance on centralized intermediaries also poses a risk to the financial sovereignty that crypto aims to achieve.