U.S. PPI Surges 6.3% as BTC Sinks, Gold Rebounds, and XRP ETFs Buck Outflow Trend

• U.S. PPI rose 6.3% annually in September, while monthly producer prices climbed 1.3%.
• Bitcoin fell 0.4% in three minutes after PPI, while gold gained 1.3% by 9:30 a.m. ET.
• XRP funds drew $700,000 on October 14 as Bitcoin and Ether ETFs lost $390.9 million.

Thursday’s inflation report triggered divergent market reactions as Bitcoin fell and gold advanced. Meanwhile, previous-day XRP inflows contrasted with broader crypto fund withdrawals, although post-report capital rotation remains unconfirmed.

Wholesale Inflation Raises the Stakes for the Fed

U.S. producer prices rose 1.3% in September, the largest monthly gain since March 2022, according to the Bureau of Labor Statistics. Meanwhile, annual wholesale inflation accelerated from 5.6% in August to 6.3%. Energy prices led the increase, rising 10.8%, while gasoline jumped 20.3%.

Services also climbed 0.8%, and prices excluding food, energy, and trade services advanced 0.5%. The report followed Wednesday’s 3.7% annual consumer inflation reading, bringing the Federal Reserve’s October 27–28 meeting into sharper focus. Consequently, traders assigned a 30% probability to an October rate increase.

Bitcoin Slips 0.4% as Gold Gains 1.3% After PPI Release

As the report arrived at 8:30 a.m. ET, Bitcoin traded near $80,925. Three minutes later, it stood at $80,582, down 0.4%, extending losses that began before the release.

Elsewhere, Ether traded near $2,350 earlier Thursday after losing over 6% in 24 hours, while XRP declined approximately 5%. Meanwhile, liquidations reached $282.58 million in Ether futures and $212.20 million in Bitcoin futures over the preceding day.

In contrast, Gold moved in the opposite direction, rising 1.3% to $4,156.52 an ounce by 9:30 a.m. ET after three losing sessions. The rebound coincided with a 0.5% decline in the dollar index and lower Treasury yields, although its cause remains unconfirmed.

XRP Funds Draw $700,000 Before PPI Despite Wider ETF Outflows

Against this backdrop, Wednesday’s U.S. spot fund data revealed contrasting investor flows across cryptocurrency investment products:

Combined Bitcoin and Ether ETF withdrawals reached $390.9 million, contrasting with XRP’s modest inflows. However, the divergence indicates selective demand rather than confirmed capital rotation.

Moreover, these figures cover Wednesday, before Thursday’s PPI release. Consequently, they cannot establish whether investors redirected funds from Bitcoin or Ethereum into XRP following the inflation report.

EXPANSION CASE

Sustained weakness below $80,582 would extend Bitcoin’s decline, potentially increasing pressure on Ether and XRP. Meanwhile, continued dollar weakness and falling Treasury yields could support further gold gains above $4,156.52.

FAILURE CASE

A Bitcoin recovery above $80,925 could weaken the bearish scenario, allowing Ether and XRP to stabilize. Conversely, a stronger dollar and rising Treasury yields could slow gold’s recovery or reverse its recent gains.

BOTTOM LINE 

Wholesale inflation accelerated as Bitcoin weakened and gold recovered. Meanwhile, XRP funds bucked broader outflows, although direct capital rotation remains unverified.

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