Bitcoin saw a slight increase after the Bureau of Labor Statistics reported a 0.1% drop in the producer price index for August, potentially signaling a Fed rate cut next week. As of now, BTC is up 0.5% in the past hour, trading at over $114,000, with Ethereum also gaining 0.2% to $4,382.10. Despite this, core PPI rose by 0.3% month over month, hitting a year-over-year rate of 2.8%. Unity Wallet’s COO mentioned that the consumer price index tomorrow could impact markets, especially in the context of inflation data affecting monetary policy direction.

Market sentiment is currently neutral, with the Crypto Fear & Greed Index at 49, as traders await the FOMC decision on federal interest rates next week. The CME FedWatch tool shows 88% of investors expect a 25 basis point cut, while 12% anticipate a 50 basis point cut. Non-farm payrolls, unemployment, and the FOMC will be crucial factors impacting immediate crypto volatility.

Read more at Yahoo Finance: Bitcoin Price Gets a Boost From Producer Price Index Print