The U.S. Producer Price Index (PPI) for final demand rose to 4% year-over-year in March 2026 but remained much lower than the consensus expectations. As the US PPI inflation came in lower-than-expected, it could act as a bullish signal for the crypto market. Bitcoin price recorded a major upside today, surging above $75,000 as netizens expect US-Iran negotiation talks to resume.
US PPI Data Suggests Cooling Inflation
According to data from the Bureau of Labour Statistics, the March US PPI came in lower at 4% compared to the consensus estimate of 4.7% on a yearly basis. However, it marks a significant increase from February’s 3.6% rise in PPI.
Meanwhile, on a monthly basis, the US PPI rose 0.5%, which is sharply lower than the 1.1% consensus forecast. The rate has remained consistent since February but marks a 0.1% reduction from January’s figures.
Core PPI remained unchanged at 3.8%, which is the highest 12-month increase since February 2023. Moreover, though the US PPI inflation is under the consensus estimate, a 4% rise represents the highest growth in three-years.
Why Inflation Data Matters For The Crypto Market?
In conditions of lower-than-expected inflation, the Federal Reserve generally shifts to a dovish stance, which historically has proven to be beneficial for the crypto market. The Fed could cut interest rates in an attempt to ease monetary policy. It could, in turn, benefit risk assets like Bitcoin and other cryptocurrencies
Amid the US PPI data release, Bitcoin price extended intraday gains. At press time, the BTC price stood at $75,427.20, up by 5.47% on Tuesday, April 14. The overall crypto market also rallied with Ethereum surging over 8% while XRP price up by 2.72% today. The expectations around revival of US-Iran negotiation talks is fueling this momentum.
Moreover, analysts like Michaël van de Poppe expect Bitcoin to enter the $80,000 to $85,000 range if the surge continues in the long-term. The next Federal Open Market Committee (FOMC) meeting could be a decisive factor in deciding Bitcoin price’s fate as a rate cut or dovish pause could offer an instead boost to the crypto market in future.
Source: https://coingape.com/us-ppi-inflation-cools-to-4-bitcoin-price-extends-rally/
