BTC Volatility Analysis for PPI, 14th September 2022

Data Analysis

Measured by Clometrix

Bitcoin's volatility ratio was 2.80x, against 2.08x for a typical PPI release since 2021. Its volume ratio was 2.10x, against a typical 2.30x. That is a strong reaction by this release's own standard. 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 $20,213.81 when the figure came out. Fifteen minutes later it was 0.5% higher, and an hour later 0.62% higher. Its high-to-low range in the hour after was 1.31% of its price, against 1.24% in the hour before.

The release

Released by the Bureau of Labor Statistics on 14 September 2022 at 8:30 AM EDT. The Producer Price Index came in at -0.1% for August 2022, against -0.3% in July 2022. Producer prices are still falling, 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 7 days before the Federal Reserve's 21 September rate decision. Its own ratio of 2.80x 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 registered a strong reaction to the September 2022 PPI release. Its volatility ratio reached 2.80x in the quarter hour after the print, well above the 2.08x median recorded across 70 PPI releases since 2021. Volume rose 2.10x against the typical 2.30x, showing that the move was driven more by price range than by turnover.

Bitcoin stood at $20,213.81 at the 8:30 AM release. It rose 0.5 percent within fifteen minutes and 0.62 percent after one hour. The high-to-low range expanded to 1.31 percent of price in that hour from 1.24 percent in the hour before. The reading arrived alongside the core PPI figure, so the measured response reflects the combined impact of both releases.

The release came seven days before the Federal Reserve's September policy decision. PPI prints in the two weeks before FOMC meetings have historically produced a median volatility ratio of 2.18x. This instance exceeded that benchmark, indicating that proximity to the meeting alone did not explain the size of the move. Across the full record, PPI has shown limited sensitivity to Fed timing.

Traders monitoring the next PPI release can note that volatility ratios above 2.5x remain uncommon even in the pre-FOMC window. The 2022 episode demonstrates that individual prints can still exceed the event's typical response when the data deviate from recent trends, without requiring any change in the broader schedule.

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

20,197.24

Close

20,258.72

24h Change

61.48 (0.30%)

24h High

20,541.48

24h Low

19,617.62

24h Volume

338,634 BTC

US Producer Price Index

Bureau of Labor Statistics

14th September, 2022, 8:30AM Timezone: America/New York

Chart Data from Binance

Observations

Time Open High Low Close Change Amplitude Volume
 
1 Minute
Before20225.1520248.9320212.0120213.81-0.06%0.18%231 BTC
During20213.8120287.9020126.0120212.32-0.01%0.80%833 BTC
 
5 Minutes
Before20197.8720248.9320177.6920213.810.08%0.35%1,246 BTC
During20213.8120320.0020126.0120257.960.22%0.95%2,640 BTC
 
10 Minutes
Before20173.0620248.9320144.9320213.810.20%0.51%3,215 BTC
During20213.8120332.4020126.0120317.040.51%1.02%4,417 BTC
 
15 Minutes
Before20143.0720248.9320098.2320213.810.35%0.74%5,214 BTC
During20213.8120347.9120126.0120313.940.49%1.09%6,289 BTC
 
30 Minutes
Before20224.7420248.9320070.0020213.81-0.05%0.88%12,005 BTC
During20213.8120347.9120126.0120309.110.47%1.09%11,487 BTC
 
1 Hour
Before20298.3520319.9020070.0020213.81-0.42%1.23%21,248 BTC
During20213.8120389.9920126.0120338.890.61%1.29%20,722 BTC
 
2 Hours
Before20331.7720374.1420070.0020213.81-0.58%1.49%31,894 BTC
During20213.8120389.9920116.2420119.73-0.47%1.34%43,215 BTC
 
4 Hours
Before20220.2720419.8320070.0020213.81-0.03%1.71%56,557 BTC
During20213.8120389.9920104.0220118.55-0.47%1.40%78,601 BTC
 
6 Hours
Before20305.6920419.8320070.0020213.81-0.45%1.71%81,696 BTC
During20213.8120389.9919617.6219937.63-1.39%3.79%113,373 BTC
 
8 Hours
Before20197.2420541.4820126.2820220.900.12%2.02%93,867 BTC
During20220.2720419.8320070.0020118.55-0.51%1.71%135,158 BTC
 
12 Hours
Before20197.2420541.4820070.0020213.810.08%2.30%150,424 BTC
During20213.8120393.3719617.6220258.720.22%3.80%188,210 BTC

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