BTC Volatility Analysis for PPI, 9th December 2022

Data Analysis

Measured by Clometrix

Bitcoin's volatility ratio was 9.59x, against 2.08x for a typical PPI release since 2021. Its volume ratio was 6.11x, against a typical 2.30x. That is more than twice 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.

How Bitcoin moved

Bitcoin was at $17,232.90 when the figure came out. Fifteen minutes later it was 0.53% lower, and an hour later 0.66% lower. Its high-to-low range in the hour after was 1.15% of its price, against 1.1% in the hour before.

The release

Released by the Bureau of Labor Statistics on 9 December 2022 at 8:30 AM EST. The Producer Price Index came in at 0.3% for November 2022, against 0.3% in October 2022. 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.

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 5 days before the Federal Reserve's 14 December rate decision. Its own ratio of 9.59x compares with 2.18x for those, so it moved the price more than its circumstances alone would suggest.

Its record

Across 70 PPI releases since 2021, Bitcoin's median volatility ratio is 2.08x.

What it means

Bitcoin posted an exceptional reaction to the November PPI release. Volatility reached 9.59x the typical quarter-hour level while volume rose to 6.11x. Bitcoin traded at $17,232.90 at the 8:30 AM print and declined 0.53 percent within fifteen minutes and 0.66 percent within the hour. The hourly high-low range widened only to 1.15 percent from 1.1 percent beforehand.

Timing relative to the December FOMC meeting

The release fell five days before the 14 December rate decision and arrived alongside the Core PPI figure. PPI prints in the two weeks before FOMC meetings have carried a median volatility ratio of 2.18x since 2021. This event produced more than four times that median.

Seventy PPI releases since 2021 show a median Bitcoin volatility ratio of 2.08x. The magnitude recorded here therefore exceeded both the event's usual response and the subset of releases that share its proximity to a policy decision, giving traders a concrete illustration of how far individual outcomes can depart from those benchmarks.

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

17,268.63

Close

17,157.95

24h Change

-110.68 (-0.65%)

24h High

17,360.00

24h Low

17,058.21

24h Volume

233,512 BTC

US Producer Price Index

Bureau of Labor Statistics

9th December, 2022, 8:30AM Timezone: America/New York

Chart Data from Binance

Observations

Time Open High Low Close Change Amplitude Volume
 
1 Minute
Before17227.8217233.0017220.0017232.900.03%0.08%232 BTC
During17232.9017256.5817058.2117086.84-0.85%1.15%4,001 BTC
 
5 Minutes
Before17209.8917233.0017207.2117232.900.13%0.15%1,016 BTC
During17232.9017256.5817058.2117152.05-0.47%1.15%7,790 BTC
 
10 Minutes
Before17225.8717238.1017204.9817232.900.04%0.19%2,238 BTC
During17232.9017256.5817058.2117133.82-0.58%1.15%10,097 BTC
 
15 Minutes
Before17244.5217245.1217204.9817232.90-0.07%0.23%3,770 BTC
During17232.9017256.5817058.2117140.74-0.54%1.15%11,999 BTC
 
30 Minutes
Before17257.3117275.2217204.9817232.90-0.14%0.41%7,040 BTC
During17232.9017256.5817058.2117150.70-0.48%1.15%17,022 BTC
 
1 Hour
Before17241.3017360.0017170.8517232.90-0.05%1.09%22,677 BTC
During17232.9017256.5817058.2117119.60-0.66%1.15%25,106 BTC
 
2 Hours
Before17218.9817360.0017170.8517232.900.08%1.09%32,961 BTC
During17232.9017256.5817058.2117163.63-0.40%1.15%41,475 BTC
 
4 Hours
Before17215.9017360.0017170.8517232.900.10%1.09%51,918 BTC
During17232.9017256.5817058.2117156.50-0.45%1.15%61,025 BTC
 
6 Hours
Before17231.5317360.0017170.8517232.900.01%1.09%64,882 BTC
During17232.9017256.5817058.2117146.37-0.50%1.15%77,389 BTC
 
8 Hours
Before17268.6317300.0017188.0017215.39-0.31%0.65%62,349 BTC
During17215.9017360.0017058.2117156.50-0.35%1.74%112,943 BTC
 
12 Hours
Before17268.6317360.0017170.8517232.90-0.21%1.09%114,267 BTC
During17232.9017256.5817058.2117157.95-0.44%1.15%119,244 BTC

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