Bitcoin (BTC) Price Prediction: Rising US PPI Intensifies Expectations for "Rate Cuts", BTC Spot ETF Expected to See Inflows for Nine Consecutive Days

The recovery path of Bitcoin (BTC) faces obstacles, with today's (17th) Asian afternoon report at 118,393 USD. The rise in the U.S. Producer Price Index (PPI) has intensified market expectations for interest rate cuts by The Federal Reserve (FED), providing support for the crypto assets market. In terms of funds, the U.S. Bitcoin spot ETF is expected to see inflows for nine consecutive days.

The passage of the U.S. "GENIUS Act" may shift the focus to the "CLARITY Act," a market structure bill that will provide much-needed regulatory clarity for the U.S. digital asset space, potentially driving the adoption of Bitcoin.

Although "clear rules" are crucial, U.S. economic data and the Federal Reserve's interest rate path continue to influence the demand for Bitcoin.

On July 16, the U.S. PPI indicated a weakening inflation outlook, raising expectations for a rate cut by The Federal Reserve (FED) in September. In June, the PPI index rose 2.3% compared to the same period last year, lower than May's 2.7%. Economists believe that PPI is a leading indicator of the Consumer Price Index (CPI).

According to the Federal Reserve (FED) observation tool of the Chicago Mercantile Exchange (CME), the possibility of a rate cut by the Federal Reserve (FED) in September rose from 55.6% on July 15 to 59.6% on July 16. The optimistic report on the US Consumer Price Index released on Tuesday led to the possibility of a rate cut in September dropping from 62.6% on July 14 to 55.6% on July 15.

The U.S. Bitcoin Spot ETF market is expected to see inflows for nine consecutive days

On July 15, the U.S. Bitcoin Spot ETF market continued its inflow momentum, with inflows for 9 consecutive trading days, totaling a net inflow of $403.1 million. BlackRock's iShares Bitcoin Spot ETF (IBIT) continues to lead the Spot ETF market, with a net inflow of $416.3 million.

According to Farside Investors, the main capital flow trends on July 16 include:

· Fidelity Wise Origin Bitcoin Fund (FBTC) had a net inflow of $10.4 million.

· Grayscale Bitcoin Trust net inflows of 5.3 million USD

With the release of the flow data for the IBIT and ARK 21Shares Bitcoin ETF (ARKB), the total inflow for the US Bitcoin Spot ETF has reached $15.7 million.

Bitcoin Price Analysis

FXEmpire analyst Bob Mason stated that the recent price trend of Bitcoin depends on several key driving factors, including the cryptocurrency vote on Capitol Hill, U.S. retail sales data, and Spot ETF liquidity trends. Possible scenarios:

Bearish scenario: Legislative setbacks, weak retail sales, hawkish hints from The Federal Reserve (FED), and outflows from ETF funds. The combined effect of these factors could push Bitcoin towards $115,000 and potentially reach the 50-day Exponential Moving Average (EMA).

Bullish scenario: Bipartisan support for the crypto assets bill, strong U.S. retail sales, dovish comments from The Federal Reserve (FED), and inflows into ETFs. In this scenario, Bitcoin may retest the historical high of $122,057.

(Source: Trading View)