Data Analysis
The release
Released by the Bureau of Labor Statistics on 13 January 2022 at 8:30 AM EST. The Producer Price Index came in at 0.6% for December 2021, against 1.1% in November 2021. 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 $43,692.79 when the figure came out. Fifteen minutes later it was 0.27% higher, and an hour later 1.14% higher. Its high-to-low range in the hour after was 1.35% of its price, against 0.35% in the hour before.
Measured by Clometrix
Bitcoin's volatility ratio was 1.75x, against 2.08x for a typical PPI release since 2021. Its volume ratio was 1.51x, 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 came out 13 days before the Federal Reserve's 26 January rate decision. Its own ratio of 1.75x compares with 2.18x 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 registered an ordinary response to the January 2022 PPI release. Its volatility ratio reached 1.75x in the quarter hour after the print, below the 2.08x median recorded across 70 PPI releases since 2021. Volume expanded only 1.51x against the 2.30x benchmark for the event. The price rose from $43,692.79 to a 1.14 percent gain within the first hour while the hourly range widened to 1.35 percent from 0.35 percent beforehand.
Multiple Releases and Fed Timing
The print arrived alongside Core PPI, Initial Jobless Claims and Continued Jobless Claims, so the measured reaction reflects the combined arrival. It also landed thirteen days before the Federal Reserve's January policy decision. Releases in the thirteen days before the Federal Reserve's January policy decision have typically produced a 2.18x median volatility ratio for Bitcoin, yet this instance stayed below that level and below the overall PPI median. The subdued outcome aligns with the data showing PPI releases two weeks before FOMC meetings have not produced materially larger moves than those at other times.
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
43,605.36Close
42,617.5724h Change
-987.79 (-2.32%)24h High
44,500.0024h Low
42,311.2224h Volume
34,901 BTCUS Producer Price Index
Bureau of Labor Statistics
13th January, 2022, 8:30AM Timezone: America/New York
Chart Data from Binance
Observations
| Time | Open | High | Low | Close | Change | Amplitude | Volume |
|---|---|---|---|---|---|---|---|
| 1 Minute | |||||||
| Before | 43697.39 | 43699.60 | 43688.01 | 43692.79 | -0.01% | 0.03% | 11 BTC |
| During | 43692.79 | 43787.40 | 43680.00 | 43757.78 | 0.15% | 0.25% | 33 BTC |
| 5 Minutes | |||||||
| Before | 43710.81 | 43710.81 | 43682.97 | 43692.79 | -0.04% | 0.06% | 59 BTC |
| During | 43692.79 | 43939.00 | 43680.00 | 43877.85 | 0.42% | 0.59% | 184 BTC |
| 10 Minutes | |||||||
| Before | 43709.74 | 43766.37 | 43682.97 | 43692.79 | -0.04% | 0.19% | 137 BTC |
| During | 43692.79 | 43939.00 | 43680.00 | 43850.00 | 0.36% | 0.59% | 316 BTC |
| 15 Minutes | |||||||
| Before | 43752.62 | 43766.37 | 43659.21 | 43692.79 | -0.14% | 0.24% | 244 BTC |
| During | 43692.79 | 43939.00 | 43680.00 | 43810.78 | 0.27% | 0.59% | 385 BTC |
| 30 Minutes | |||||||
| Before | 43803.16 | 43806.72 | 43659.21 | 43692.79 | -0.25% | 0.34% | 384 BTC |
| During | 43692.79 | 43939.00 | 43680.00 | 43924.62 | 0.53% | 0.59% | 640 BTC |
| 1 Hour | |||||||
| Before | 43780.00 | 43811.00 | 43659.21 | 43692.79 | -0.20% | 0.35% | 736 BTC |
| During | 43692.79 | 44270.00 | 43680.00 | 44189.52 | 1.12% | 1.33% | 3,042 BTC |
| 2 Hours | |||||||
| Before | 43631.70 | 43811.00 | 43575.05 | 43692.79 | 0.14% | 0.54% | 1,678 BTC |
| During | 43692.79 | 44500.00 | 43126.24 | 43298.17 | -0.91% | 3.09% | 7,965 BTC |
| 4 Hours | |||||||
| Before | 43887.08 | 44014.51 | 43500.00 | 43692.79 | -0.44% | 1.17% | 4,189 BTC |
| During | 43692.79 | 44500.00 | 42565.01 | 42833.43 | -2.01% | 4.35% | 14,024 BTC |
| 6 Hours | |||||||
| Before | 43703.85 | 44014.51 | 43500.00 | 43692.79 | -0.03% | 1.17% | 6,214 BTC |
| During | 43692.79 | 44500.00 | 42565.01 | 42708.15 | -2.31% | 4.35% | 16,701 BTC |
| 8 Hours | |||||||
| Before | 43605.36 | 43940.01 | 43422.72 | 43887.08 | 0.64% | 1.18% | 7,200 BTC |
| During | 43887.08 | 44500.00 | 42565.01 | 42833.43 | -2.46% | 4.35% | 18,213 BTC |
| 12 Hours | |||||||
| Before | 43605.36 | 44014.51 | 43422.72 | 43692.79 | 0.20% | 1.34% | 11,389 BTC |
| During | 43692.79 | 44500.00 | 42311.22 | 42617.57 | -2.52% | 4.92% | 23,512 BTC |
