PPI Surprise Raises Inflation Risk — Negative for Crypto

I note the Producer Price Index (PPI), which measures prices producers receive for goods and services, came much higher than expected: monthly +0.9% (vs. 0.2% expected) and yearly +3.3% (vs. 2.5% expected).

This jump shows rapidly rising producer costs that typically feed into consumer inflation. Stronger inflation makes the Fed less likely to cut rates soon and may delay any easing plans.

I view this as negative for the crypto market — higher rates and delayed cuts reduce liquidity and risk appetite. BTC and altcoins already reacted with declines, so I prefer to reduce exposure and avoid new long entries until inflation and Fed signals clear up.