Data Analysis
The release
Released by the Bureau of Labor Statistics on 12 May 2022 at 8:30 AM EDT. The Producer Price Index came in at 0.5% for April 2022, against 1.7% in March 2022. Producer prices are still rising, but more slowly than before.
It arrived at the same moment as Core Producer Price Index, Initial Jobless Claims and Continued Jobless Claims, so the reaction measured on this page belongs to all of them together.
How Bitcoin moved
Bitcoin was at $28,073.82 when the figure came out. Fifteen minutes later it was 1.51% higher, and an hour later 2.1% higher. Its high-to-low range in the hour after was 2.66% of its price, against 3.96% in the hour before.
Measured by Clometrix
Bitcoin's volatility ratio was 1.74x, against 2.08x for a typical PPI release since 2021. Its volume ratio was 0.94x, against a typical 2.30x. That is about what this release usually does. Both compare the quarter hour of the release with an ordinary quarter hour that same day, where 1.00x is no change: volatility is how far the price ranged, volume how much traded.
What made it matter
Since 2021, PPI releases in the two weeks before a Fed decision have moved Bitcoin about as much as those at other times: a median volatility ratio of 2.18x across 29, against 2.05x across 41. This one was not within two weeks of a Fed decision. Its own ratio of 1.74x compares with 2.05x for those, so it moved the price less than its circumstances would suggest.
Its record
Across 70 PPI releases since 2021, Bitcoin's median volatility ratio is 2.08x.
What it means
Bitcoin's response to the May 2022 PPI release registered as ordinary by Clometrix standards. The price rose 1.51 percent in the first fifteen minutes and 2.1 percent within the hour, while the hourly high-to-low range narrowed to 2.66 percent from 3.96 percent beforehand. The resulting volatility ratio of 1.74x sat below the 2.08x median recorded across seventy prior PPI prints since 2021.
Volume showed even less movement, reaching just 0.94x of a normal quarter-hour on the same day against a typical 2.30x for this event. The print itself eased to 0.5 percent month-over-month from 1.7 percent in March, yet arrived alongside the core PPI, initial claims and continued claims, so the measured ratios capture the combined effect.
Timing placed the release thirty-three days before the June FOMC decision and therefore outside the two-week window that has historically produced a median volatility ratio of 2.18x. Against the 2.05x median for non-proximate releases, the 1.74x outcome here fell short of what the calendar context alone would imply.
Traders reviewing the next PPI release can note that ordinary reactions remain the most common outcome even when inflation prints moderate, and that proximity to policy meetings has not produced reliably larger moves in Bitcoin.
About Producer Price Index
The Producer Price Index (PPI) measures the average change over time in the prices domestic producers receive for their output. It is a measure of inflation at the wholesale level that is compiled from thousands of indexes measuring producer prices by industry and product category. The index is published monthly by the U.S. Bureau of Labor Statistics (BLS).
Disclaimer
The data analysis, forecasted results and projections provided herein are based on historical price action and market trends. While every effort has been made to ensure the accuracy of the information, these predictions are speculative and should not be considered a guarantee of future performance. Market conditions can change rapidly, and past performance is not indicative of future results. Trading and investing involve significant risk, and you should conduct your own research and consult with a licensed financial advisor before making any investment decisions. We do not assume any liability for any losses that may result from reliance on this information.
BTC-USDT
Bitcoin
Open
29,765.63Close
28,992.7924h Change
-772.84 (-2.67%)24h High
30,243.0024h Low
26,700.0024h Volume
202,428 BTCUS Producer Price Index
Bureau of Labor Statistics
12th May, 2022, 8:30AM Timezone: America/New York
Chart Data from Binance
Observations
| Time | Open | High | Low | Close | Change | Amplitude | Volume |
|---|---|---|---|---|---|---|---|
| 1 Minute | |||||||
| Before | 28044.65 | 28080.94 | 28000.81 | 28073.81 | 0.10% | 0.29% | 67 BTC |
| During | 28073.82 | 28217.10 | 28043.20 | 28158.98 | 0.30% | 0.62% | 150 BTC |
| 5 Minutes | |||||||
| Before | 28191.57 | 28226.32 | 27955.00 | 28073.81 | -0.42% | 0.96% | 640 BTC |
| During | 28073.82 | 28436.25 | 28043.20 | 28261.72 | 0.66% | 1.38% | 469 BTC |
| 10 Minutes | |||||||
| Before | 28256.81 | 28327.77 | 27955.00 | 28073.81 | -0.65% | 1.32% | 1,024 BTC |
| During | 28073.82 | 28717.45 | 28043.20 | 28588.12 | 1.80% | 2.35% | 1,200 BTC |
| 15 Minutes | |||||||
| Before | 28253.33 | 28376.01 | 27955.00 | 28073.81 | -0.64% | 1.48% | 1,382 BTC |
| During | 28073.82 | 28777.28 | 28043.20 | 28498.09 | 1.49% | 2.55% | 1,683 BTC |
| 30 Minutes | |||||||
| Before | 28472.98 | 28652.86 | 27955.00 | 28073.81 | -1.42% | 2.44% | 3,176 BTC |
| During | 28073.82 | 28777.28 | 28043.20 | 28506.30 | 1.52% | 2.55% | 3,431 BTC |
| 1 Hour | |||||||
| Before | 28982.73 | 29065.85 | 27955.00 | 28073.81 | -3.24% | 3.82% | 6,890 BTC |
| During | 28073.82 | 28790.00 | 28043.20 | 28662.35 | 2.05% | 2.59% | 6,118 BTC |
| 2 Hours | |||||||
| Before | 28343.89 | 29294.00 | 27955.00 | 28073.81 | -0.96% | 4.57% | 14,533 BTC |
| During | 28073.82 | 28988.00 | 27902.95 | 28746.39 | 2.34% | 3.74% | 16,575 BTC |
| 4 Hours | |||||||
| Before | 27908.69 | 29294.00 | 27477.70 | 28073.81 | 0.59% | 6.20% | 29,984 BTC |
| During | 28073.82 | 29813.00 | 27902.95 | 29605.54 | 5.17% | 6.41% | 34,898 BTC |
| 6 Hours | |||||||
| Before | 27513.32 | 29294.00 | 26750.00 | 28073.81 | 2.00% | 8.68% | 63,286 BTC |
| During | 28073.82 | 29967.03 | 27902.95 | 28548.89 | 1.66% | 6.89% | 47,259 BTC |
| 8 Hours | |||||||
| Before | 29765.63 | 30243.00 | 26700.00 | 27908.69 | -6.65% | 11.72% | 104,539 BTC |
| During | 27908.69 | 29813.00 | 27477.70 | 29605.54 | 5.73% | 7.83% | 64,882 BTC |
| 12 Hours | |||||||
| Before | 29765.63 | 30243.00 | 26700.00 | 28073.81 | -6.03% | 11.72% | 134,522 BTC |
| During | 28073.82 | 29967.03 | 27902.95 | 28992.79 | 3.17% | 6.89% | 67,906 BTC |
