BTC Volatility Analysis for PPI, 14th December 2021

Data Analysis

The release

Released by the Bureau of Labor Statistics on 14 December 2021 at 8:30 AM EST. The Producer Price Index came in at 1.1% for November 2021, against 0.6% in October 2021. Producer prices are rising faster than before.

It arrived at the same moment as Core Producer Price Index, so the reaction measured on this page belongs to all of them together.

Measured by Clometrix

Bitcoin's volatility ratio was 1.49x, against 2.08x for a typical PPI release since 2021. Its volume ratio was 1.62x, against a typical 2.30x. Under 1.5x is not a reaction at all: the market barely noticed this release. 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.

How Bitcoin moved

Bitcoin was at $47,410.00 when the figure came out. Fifteen minutes later it was 0.74% lower, and an hour later 1.02% lower. Its high-to-low range in the hour after was 1.26% of its price, against 1.13% in the hour before.

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 came out the day before the Federal Reserve's 15 December rate decision. Its own ratio of 1.49x compares with 2.18x for those, so it moved the price less than its circumstances would suggest.

What it means

Quiet Reaction Ahead of Fed Decision

Bitcoin registered a quiet response to the November Producer Price Index, posting a volatility ratio of 1.49x against the 2.08x median recorded for PPI releases since 2021. Volume expanded by just 1.62x, below the typical 2.30x. The hourly high-to-low range reached 1.26% of spot, little changed from the 1.13% range seen in the prior hour.

The print arrived alongside Core PPI and one day before the Federal Reserve's December policy meeting. Releases of this type in the two weeks before a rate decision have produced a median volatility ratio of 2.18x across 29 observations. The 1.49x outcome here fell noticeably short of that benchmark. for the next PPI release, the record indicates that proximity to a Federal Open Market Committee meeting has not by itself lifted Bitcoin's reaction above the event's ordinary level. A trader can therefore treat the pre-decision window as neutral rather than automatically additive to volatility expectations.

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

46,839.47

Close

48,111.14

24h Change

1271.67 (2.64%)

24h High

48,761.00

24h Low

46,306.80

24h Volume

40,198 BTC

US Producer Price Index

Bureau of Labor Statistics

14th December, 2021, 8:30AM Timezone: America/New York

Chart Data from Binance

Observations

Time Open High Low Close Change Amplitude Volume
 
1 Minute
Before47369.0447417.6947364.8647410.010.09%0.11%17 BTC
During47410.0047410.0147316.2247345.35-0.14%0.20%31 BTC
 
5 Minutes
Before47339.7447417.6947234.2347410.010.15%0.39%307 BTC
During47410.0047410.0147122.3747206.98-0.43%0.61%211 BTC
 
10 Minutes
Before47501.7047501.7147234.2347410.01-0.19%0.56%561 BTC
During47410.0047410.0147039.0347050.42-0.76%0.78%418 BTC
 
15 Minutes
Before47605.7247605.7247234.2347410.01-0.41%0.78%747 BTC
During47410.0047410.0147022.3747060.93-0.74%0.82%573 BTC
 
30 Minutes
Before47508.3147679.4647234.2347410.01-0.21%0.93%990 BTC
During47410.0047410.0146980.9447168.15-0.51%0.91%1,102 BTC
 
1 Hour
Before47736.6047769.9947234.2347410.01-0.69%1.12%1,773 BTC
During47410.0047410.0146814.2746924.15-1.04%1.26%2,045 BTC
 
2 Hours
Before47307.4747959.7747178.6647410.010.22%1.63%4,340 BTC
During47410.0047513.4846814.2747472.550.13%1.47%3,844 BTC
 
4 Hours
Before47290.4347959.7746789.6947410.010.25%2.44%7,963 BTC
During47410.0047517.2746532.3547069.00-0.72%2.07%8,048 BTC
 
6 Hours
Before46715.0747959.7746708.9647410.011.47%2.61%11,540 BTC
During47410.0047517.2746429.8846993.72-0.89%2.29%10,910 BTC
 
8 Hours
Before46839.4747516.2546306.8047290.430.95%2.55%10,849 BTC
During47290.4347959.7746532.3547069.00-0.47%2.98%16,011 BTC
 
12 Hours
Before46839.4747959.7746306.8047410.011.20%3.45%18,813 BTC
During47410.0048761.0046429.8848111.141.46%4.78%21,385 BTC

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