BTC Volatility Analysis for PPI, 14th July 2021

Data Analysis

The release

Released by the Bureau of Labor Statistics on 14 July 2021 at 8:30 AM EDT. The Producer Price Index came in at 0.7% for June 2021, against 1.0% in May 2021. Producer prices are still rising, but more slowly 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 0.87x, against 2.08x for a typical PPI release since 2021. Its volume ratio was 0.99x, 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 $32,364.06 when the figure came out. Fifteen minutes later it was 0.13% lower, and an hour later 1.11% higher. Its high-to-low range in the hour after was 1.92% of its price, against 0.69% 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 14 days before the Federal Reserve's 28 July rate decision. Its own ratio of 0.87x compares with 2.18x for those, so it moved the price less than its circumstances would suggest.

What it means

Bitcoin registered a quiet reaction to the June Producer Price Index, posting a volatility ratio of 0.87 times a normal quarter hour against the 2.08 times median observed across PPI releases since 2021. Volume stayed essentially flat at 0.99 times normal.

Price movement stayed contained. Bitcoin stood at $32,364.06 at the 8:30 AM print and declined 0.13 percent within fifteen minutes before finishing 1.11 percent higher after one hour. Its high-to-low range reached 1.92 percent of price in the hour after the release, compared with 0.69 percent beforehand.

The release occurred fourteen days before the Federal Reserve's July policy meeting. Its volatility ratio remained well below the 2.18 times median recorded for PPI prints inside that two-week window. A trader reviewing the next PPI release may therefore observe that timing relative to a rate decision supplies no automatic increase in reaction size when the data line up closely with prior prints.

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

32,621.06

Close

32,814.95

24h Change

193.89 (0.59%)

24h High

33,114.03

24h Low

31,550.00

24h Volume

46,611 BTC

US Producer Price Index

Bureau of Labor Statistics

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

Chart Data from Binance

Observations

Time Open High Low Close Change Amplitude Volume
 
1 Minute
Before32366.3232374.4732357.5732364.06-0.01%0.05%17 BTC
During32364.0632403.9832340.0032397.940.10%0.20%58 BTC
 
5 Minutes
Before32349.3032394.4832343.1332364.060.05%0.16%91 BTC
During32364.0632429.9732340.0032390.420.08%0.28%138 BTC
 
10 Minutes
Before32367.0532408.5732322.7832364.06-0.01%0.26%232 BTC
During32364.0632429.9732340.0032383.930.06%0.28%225 BTC
 
15 Minutes
Before32419.3832436.2632307.7632364.06-0.17%0.40%423 BTC
During32364.0632429.9732320.5432320.55-0.13%0.34%364 BTC
 
30 Minutes
Before32450.9532517.0032307.7632364.06-0.27%0.64%783 BTC
During32364.0632429.9732280.0032313.18-0.16%0.46%692 BTC
 
1 Hour
Before32504.5732529.9432307.7632364.06-0.43%0.68%1,423 BTC
During32364.0632899.9932280.0032721.691.09%1.88%2,601 BTC
 
2 Hours
Before32595.9932707.2732307.7632364.06-0.72%1.22%3,483 BTC
During32364.0632959.2132280.0032763.131.22%2.06%5,831 BTC
 
4 Hours
Before31991.8532707.2731550.0032364.061.15%3.54%11,109 BTC
During32364.0632959.2132280.0032831.051.42%2.06%9,180 BTC
 
6 Hours
Before31843.5032707.2731550.0032364.061.61%3.54%14,054 BTC
During32364.0632959.2132280.0032892.541.61%2.06%11,586 BTC
 
8 Hours
Before32621.0632675.9431650.6131992.67-1.96%3.14%16,302 BTC
During31991.8532959.2131550.0032831.052.56%4.28%20,289 BTC
 
12 Hours
Before32621.0632707.2731550.0032364.06-0.79%3.54%27,411 BTC
During32364.0633114.0332280.0032814.951.37%2.52%19,200 BTC

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