BlockBeats News, September 11: The U.S. Bureau of Labor Statistics announced yesterday that the August Producer Price Index (PPI) unexpectedly decreased by 0.1% on a monthly basis (expectation: +0.3%), with the annual growth rate slowing to 2.6% (previously 3.1%), indicating that businesses may be absorbing some of the costs of import tariffs. Furthermore, later today, the August Consumer Price Index (CPI) is scheduled to be released, with the market widely expecting the annual growth rate to rise to 2.9%, while the core CPI is expected to show a 3.1% annual increase. In the midst of significantly downward revisions to labor market data and signs of economic slowdown, this inflation report will be the final key data release before the Federal Reserve’s September meeting, influencing the subsequent pace of interest rate cuts.
Recently, several institutions have pointed out that tariff costs and rising food prices may continue to drive prices higher, and there are also signs of a rebound in services inflation. If the CPI data exceeds expectations, the market may reassess the scope for further interest rate cuts, and there are concerns about stagflation risks.
Technically, in the short term, the $114,000 range is a key area of liquidation for BTC, serving as a major resistance zone in the near term. If the data skews bullish and pushes the price above this range, it is likely to accelerate short covering and challenge the liquidity area above $115,000. Conversely, if higher-than-expected inflation data triggers a stronger U.S. dollar and doubts about delayed rate cuts, the $111,000 range is the first support level for BTC, and a breach may lead to a retest of the liquidity zone at $108,500–$109,000.
Bitunix analysts suggest: Against the backdrop of the unexpected decline in PPI but with continued upside risk in CPI, traders are advised to reduce exposure before the CPI release, closely monitor the performance of the $114,000 BTC resistance zone and the $111,000 support level to prepare for potential significant volatility.
