Cryptocurrency markets traded higher on Thursday after the release of the Producer Price Index (PPI) for August. Bitcoin (BTC) gained 1% while Ethereum (ETH) is flat, with BTC trading at $58,200 and ETH at $2,347. Other major cryptocurrencies, such as Polkadot (DOT) and Solana (SOL), posted 1% gains. According to the Labor Department, the PPI for August recorded a 0.2% increase in wholesale prices, matching economists' expectations. PPI measures the average change in selling prices received by domestic producers for their goods and services. An increase in PPI indicates rising inflationary pressures, which may lead to higher interest rates. For cryptocurrency markets, higher inflation can fuel demand for assets like Bitcoin, which some view as a hedge against inflation, potentially driving prices higher in response to macroeconomic conditions. The market rally follows signs of a more measured pace of inflation after the European Central Bank (ECB) cut interest rates by 25 basis points to 3.5%, responding to slow economic growth in the eurozone. Bitcoin Whales Await Market Signals Bitcoin whale activity has slowed since mid-August, with large transactions dropping by 33.6% since March 13, when Bitcoin hit its $73,679 all-time high. Ether has seen an even sharper decline, with whale transactions falling 72.5% over the same period. Santiment noted that whales — wallets holding at least 10,000 BTC — may be sitting on the sidelines waiting for signs of market extremes, whether driven by fear or greed. “Large key stakeholders continue to bide their time as they wait to make their next moves during times of extreme crowd greed or extreme fear,” Santiment said, adding that this isn't necessarily a bearish indicator. Notably, sentiment in the crypto market remains cautious, with the Crypto Fear & Greed Index sitting at 31, indicating “fear.” Standard Chartered’s head of forex and digital assets research, Geoff Kendrick, predicts that Bitcoin could hit a new all-time high by year’s end, regardless of the outcome of the U.S. presidential election in November. "I think bitcoin ends the year higher, at new all-time highs, no matter who wins the U.S. election, with a Trump win taking it to $125,000 and $75,000 if it’s Harris," Kendrick wrote in an email on Thursday. Spot Bitcoin ETFs Record Outflows Spot Bitcoin ETFs posted $43.9 million in net outflows on Wednesday after two consecutive days of inflows, according to Farside Investors. ARK Invest’s ARK Next Generation Internet ETF (ARKB) recorded the largest outflows, with $54 million exiting, while Grayscale Bitcoin Trust (GBTC) registered outflows of $4.59 million. Meanwhile, Fidelity’s Bitcoin ETF (FBTC) led the day with $12.57 million in inflows, while Invesco’s Bitcoin Strategy ETF (BTCO) attracted $2.59 million. It’s been nine days since BlackRock’s iShares Bitcoin ETF (IBIT) had any inflows. Its last positive day was on Aug. 26, worth $224 million. Spot Ethereum ETFs also posted net outflows on Wednesday. VanEck's Ethereum Strategy ETF (ETHV) led the outflows, with $1.71 million leaving the fund. Grayscale Ethereum Trust (ETHE) also recorded moderate activity but did not report significant changes in its flows. Meanwhile, U.S. stock markets edged higher on Thursday. The Dow Jones Industrial Average rose 0.3%, while the S&P 500 and Nasdaq gained 0.6% and 0.7%, respectively.