Bitcoin (BTC) traded back above the $60,000 mark, gaining 2.9% over the past 24 hours to reach $61,100 at the time of writing. The positive price action comes as stock markets rally following lower-than-expected producer inflation data released on Tuesday.

Japan's Nikkei 225 led the bullish trend, fully recovering from the lows reached on the August 05 drawdown, and closing up 3.45% yesterday. In the U.S., the S&P 500 and Nasdaq Composite Index also saw gains of 0.8% and 1.4%, respectively.

This was buoyed by a lower-than-expected Producer Price Index (PPI) for July. PPI for July rose by 0.1%, lower than economist’s forecast of 0.2%. Meanwhile, in the 12 months through July, PPI increased by 2.2%, below estimates of 2.3%.

Despite these developments, Bitcoin's response was muted. Trader Daan Crypto Trades highlighted the upcoming Consumer Price Index (CPI) release on August 14 as a potential catalyst for more significant moves. Meanwhile, exchange order book data from CoinGlass indicated increased buying interest around $58,000 and selling pressure at $60,000, suggesting a tight trading range.

Looking ahead, QCP Capital emphasized the importance of the CPI data for market direction, as investors remain cautious about future rate cuts. According to FedWatch data, there is optimism for potential interest rate cuts by the Federal Reserve, with markets predicting a possible 0.5% reduction in September.