Bitcoin Price Rejects $120k After Mixed US PPI Inflation Report

• Bitcoin briefly topped $120k after a flat PPI report but quickly fell as traders eyed mixed details
• The June headline PPI was flat, but underlying data shows inflation remains above the Feds 2% target
• In other news, the U.S. House passed three major crypto bills, boosting the industrys outlook

The U.S. Producer Price Index (PPI) showed no change in June, according to data released Wednesday by the Bureau of Labor Statistics. This was below economists expectations of a 0.2% increase, fueling hopes that inflation pressures may be easing. The core PPI, which excludes food and energy, also came in flat.

Following the release, Bitcoin rose sharply, moving from $117,600 to a high of $119,400 within two hours. Bitcoin surged and continued to climb, reaching above $120,000 today. The rally was driven by market optimism that slower inflation could give the Federal Reserve more room to cut interest rates later in the year.

Related: Three Trends That Defined Crypto in Q2: An ETH Lead, a DEX Rise, and a Blockbuster IPO

However, the momentum did not hold. Sellers stepped in above the $120,000 level, and the price fell back toward $118,400 by mid-afternoon. As of this press time, Bitcoin is trading at $118,742, reflecting a 0.2% daily decline but maintaining a strong 13.1% monthly gain.

Inflation Signals Remain Mixed Despite Headline Number

Although the headline PPI figure remained flat, further details from the report indicated continued inflationary pressure. Goods prices rose 0.3%, with notable gains in energy and core goods categories such as communication equipment, which increased by 0.8%. In contrast, service prices declined by 0.1%, which helped offset the rise in goods.

On a year-over-year basis, the headline PPI rose 2.3%, down from 2.7% in May. This marks the lowest annual increase since September 2024. The core PPI remained at 2.5%, suggesting that underlying inflation has not yet fully subsided.

These trends suggest that while inflation may be slowing, it remains above the Federal Reserves 2% target, complicating the outlook for monetary policy.

The PPI data followed Tuesdays release of the Consumer Price Index, which showed a 0.3% monthly increase and a 2.7% annual inflation rate. Core CPI came in at 2.9% annually, reinforcing concerns that inflation remains persistent.

House Moves Forward With Key Crypto Legislation

While markets digested the inflation numbers, the U.S. House of Representatives advanced three major crypto-related bills on Thursday. The CLARITY Act, which aims to provide regulatory clarity for digital assets, passed by a vote of 294-134.

The GENIUS Act, which sets rules for stablecoin issuers, passed with a larger margin of 308-122. The third bill is the Anti-CBDC Surveillance State Act, which seeks to prevent the creation of a U.S. central bank digital currency, passing narrowly with a vote of 219-210.

Related: US House Passes Major Crypto Bills; GENIUS Act Heads to Trumps Desk

The votes came during a Republican-led initiative dubbed “crypto week,” with strong support from lawmakers aligned with President Donald Trump. Nearly 80 Democrats supported the CLARITY Act, while more than 100 backed the GENIUS Act. The Anti-CBDC bill saw little bipartisan support and remains a contentious issue.