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Crypto Prices Quickly Slide After Troubling U.S. PPI Report
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By James Van Straten, Krisztian Sandor|Edited by Stephen Alpher
Aug 14, 2025, 12:59 p.m.
- July PPI surged 0.9% month-over-month and 3.3% year-over-year, both well above forecasts, reducing expectations for near-term Fed rate cuts.
- Bitcoin and ether quickly tumbled, leading crypto markets sharply lower in wake of the data.
Inflation concerns were re-ignited during U.S. morning hours Thursday, sending risk assets — crypto among them — sharply lower.
The July Producer Price Index (PPI) rose 0.9%, blowing past estimates for 0.2% and 0.0% in June. On a year-over-year basis, PPI was higher by 3.3% versus forecasts for 2.5% and June’s 2.4%.
STORY CONTINUES BELOW
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Core PPI, which excludes food and energy, also surged 0.9% in July, far exceeding the 0.2% expected and 0.0% in June. Core CPI year-over-year rose 3.7% against 2.9% expected and 2.6% in June.
Already well off a record high hit overnight above $124,000, bitcoin
tumbled below $119,000 on the news. Ether(ETH)plunged nearly 4% to $4,550. Other recently red-hot altcoins like solana
and XRP
were similarly struck.
Fresh labor market data provided no relief, with initial jobless claims for the week ending August 9 at 224,000, slightly below the 228,000 expected, and continuing claims holding at 1.95 million. The still-tight labor market, combined with the strong PPI readings, reinforced the view that the Fed may keep interest rates elevated for longer to tame inflation.
According to CME FedWatch, the previous 100% chance for a September rate cut slipped to 96% in wake of the fresh data.
In traditional markets, U.S. stock index futures have slipped 0.5%, the dollar is gaining ground and the 10-year U.S. Treasury yield moved higher by five basis points to 4.25%.
James Van Straten is a Senior Analyst at CoinDesk, specializing in Bitcoin and its interplay with the macroeconomic environment. Previously, James worked as a Research Analyst at Saidler & Co., a Swiss hedge fund, where he developed expertise in on-chain analytics. His work focuses on monitoring flows to analyze Bitcoin’s role within the broader financial system.
In addition to his professional endeavors, James serves as an advisor to Coinsilium, a UK publicly traded company, where he provides guidance on their Bitcoin treasury strategy. He also holds investments in Bitcoin and Strategy (MSTR).
Krisztian Sandor is a U.S. markets reporter focusing on stablecoins, tokenization, real-world assets. He graduated from New York University’s business and economic reporting program before joining CoinDesk. He holds BTC, SOL and ETH.
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What to know:
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