Bitcoin Rebounds Above $70K as Cooler October PPI Eases December Hike Fears
Bitcoin recovered toward and above $70,000 on November 13 after the US producer price index for October came in slightly below forecasts, while gold traded above $3,900 per ounce. The softer monthly reading reduced odds of a 50 basis-point Fed hike in December, though annual producer inflation rose to 6.5%, its highest since late 2022.
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Producer Prices Come in Slightly Below Forecasts
The US Bureau of Labor Statistics reported that its producer price index rose 0.3% month over month in October, below the 0.4% forecasters expected. On an annual basis, producer prices rose 6.5%, against expectations of 6.6%. Core PPI, which excludes food and energy, rose 0.3% on the month, in line with forecasts, and 5.0% over the prior year.
Sources differ on how to read the annual figure. Crypto.news characterized it as accelerating from 6.3% in September, its highest level since November 2022. Crypto Briefing described the 6.5% reading as the highest in almost four years, which is consistent with the same reference point. Both agree that the monthly pace slowed sharply from September, when the index rose a revised 1.4%.
Market Reaction and Positioning
Bitcoin had fallen roughly 7% before the release, dropping below $69,000 and reaching its lowest level since August, while Ethereum slipped below $2,000. After the PPI print, Bitcoin rose roughly 1% to 1.35% according to Crypto Briefing, and gold added about 0.6% to 1%. Crypto.news reported that the move triggered about $39 million in short liquidations within an hour, per CoinGlass data.
The sources give different accounts of the broader liquidation picture. Crypto.news cited more than $1.4 billion in leveraged positions liquidated over the prior 24 hours. Citing CoinGlass figures via BeInCrypto, it said roughly 83% of the $1.42 billion involved traders betting on higher prices. Crypto.news also reported that a leveraged Bitcoin short of about $52 million, 750 BTC with an average entry near $69,008, was opened on Hyperliquid roughly 50 minutes before the release, according to Hyperbot data. The source for that position is on-chain analytics rather than an official filing, so its significance is inferred rather than confirmed.
Rate Expectations and the Consumer Inflation Backdrop
The PPI release followed a hotter consumer price report. October CPI rose 0.4% month over month, above the 0.3% forecast, and that reading weighed on Bitcoin earlier in the week. Following the PPI print, the odds of a 50 basis-point increase at the Fed's December meeting came down, while a 25 basis-point hike remained the base case, according to Crypto Briefing. Reuters, as cited by Crypto.news, reported that investors remained divided between the two outcomes. Traditional markets moved in the same direction, with US stock futures rising, the dollar weakening and Treasury yields easing.
Swyftx lead analyst Pav Hundal had identified the release as a possible turning point for Bitcoin and the dollar, writing on November 12 that a softer reading could start a dollar unwind. The dollar had reached a 19-month high after the CPI report. Crypto.news also noted that goods prices rose 0.5% in October while services rose 0.2%, the fifth consecutive monthly gain in services.
What Remains Unresolved
Both sources describe the PPI beat as narrow, a tenth of a percentage point on the headline measures. Crypto Briefing cautioned that one month of data is a thin basis for concluding that producer costs will ease consumer prices. The recovery also coincided with turmoil around Nvidia's leadership, weakness in technology stocks and renewed Middle East tensions, which both sources cite as pressures on risk assets. Whether the December decision lands at 25 or 50 basis points remains open.
Why It Matters
For Traders
Bitcoin's reclaim of $70,000 is contingent on the December hike debate, so a hotter CPI or Fed signal in the coming days could reverse the move quickly.
For Investors
Annual producer inflation at 6.5% keeps the Fed's tightening bias intact, so the monthly softness is unlikely to change the medium-term rate path on its own.
For Builders
Heavy leveraged liquidations around the release show that perpetual futures venues are sensitive to macro prints, so risk and margin engines should be stress-tested for sharp intraday reversals.
This article is for information only and is not financial advice. Read the full disclaimer.
