Bitcoin falls below $58,000 as US inflation and job data impact market

Bitcoin's (CRYPTO:BTC) price dipped below $58,000 on September 12 as the U.S. released mixed economic data, adding uncertainty to the market. 

The cryptocurrency faced volatility ahead of the Wall Street trading session as fresh inflation and unemployment figures influenced investor sentiment.

The U.S. Producer Price Index (PPI) for August showed a 0.3% increase month-on-month, slightly higher than expected. 

However, the year-on-year figure came in lower at 2.4%. 

Commenting on the mixed inflation data, The Kobeissi Letter noted a similar divergence in the Consumer Price Index (CPI) numbers, highlighting the complex economic landscape.

Unemployment claims also surprised the market, rising to 230,750, compared to the expected 227,000. 

Despite these conflicting signals, traders and analysts maintain that the Federal Reserve is likely to proceed with a 0.25% interest rate cut at its upcoming meeting on September 18. 

This outlook is supported by CME Group’s FedWatch Tool, which indicates an 85% probability of such a cut.

Trader and analyst Michaël van de Poppe pointed out that the European Central Bank (ECB) had already moved ahead of the Fed by reducing its rates. 

He suggested that while monthly economic data appears weaker than expected, the overall lower-than-anticipated PPI could be a positive factor for Bitcoin, stating, “Good things lining up for Bitcoin.”

During the previous U.S. trading session, Bitcoin showed erratic price movements, initially dropping before recovering alongside tech stocks to finish above $57,300. 

However, concerns remain among traders. 

Skew, a popular trader, highlighted significant resistance around the $60,000 mark, noting, "Market doesn't seem that optimistic here but it does make sense with resistance overhang and supply above."

Bitcoin analyst Willy Woo also pointed to a potentially volatile market ahead, referencing his own proprietary indicators that suggest indecisive conditions. 

At the time of reporting, the Bitcoin (BTC) price was $57,913.69.