PPI Spike Spark Crypto Market Crash Amid Fed Rate Fears
Di PPI for USA for July jump 0.9% from month to month—di biggest rise since early 2022—and 3.3% from year to year, show say inflation still strong. Core PPI wey no include food and energy rise 0.6%, di biggest gain since March 2022. Dis surprise for inflation change how people expect interest rates go be, push Treasury yields high, and make dollar strong. Dis sudden change cause quick crash for crypto market as traders start to dey avoid risk. Bitcoin and Ethereum lead di fall, other altcoins follow anyhow. Markets now dey expect less or delayed Fed rate cuts for 2026. Short-term wahala for market likely to stay high before August CPI data. If inflation still high, Fed fit delay rate cuts till mid or late 2026, keep pressure on crypto prices. If inflation slow small and economy slow for Q4, e fit give chance for recovery, but for now, traders make dem ready for small liquidity and more selling pressure.
Bearish
Di expect PPI surge sharp sharp spoil soft-landing yarn. More inflation figures change rate cut hopes, push Treasury yields high plus dollar more stronger. Crypto assets as risk asset dey suffer most for tight monetary policy and less liquidity. History show say similar PPI surprise for 2021-22 cause sharp sell-off for Bitcoin and altcoins. For short term, traders go dey cautious before CPI numbers show, so volatility go still tey high. For long term, only if inflation cool down steady steady and Fed change lane for real fit bring back bullish momentum. Till then, market mood still bearish.