The latest U.S. Producer Price Index (PPI, wholesale inflation gauge) reading matched 2022 levels, renewing concerns that higher inflation could keep pressure on risk assets such as Bitcoin.
Bitcoin dropped below $80,000 after the U.S. Producer Price Index (PPI, wholesale inflation gauge) rose to 6%, a level that matched 2022 readings and intensified inflation concerns. The move underscores how macroeconomic data can quickly affect crypto markets, as traders often reassess expectations for interest rates and liquidity when inflation remains elevated. Higher inflation readings are typically viewed as a headwind for Bitcoin and other risk assets because they can support tighter monetary policy.