Hotter-than-expected U.S. producer price inflation and heightened credit market stress drove Bitcoin below $66,000, deepening losses across major cryptocurrencies and related stocks.
Bitcoin dropped 3% to below $66,000 on Feb. 26, erasing midweek gains as macroeconomic pressures mounted. A stronger-than-expected January U.S. Producer Price Index, with core PPI up 3.6% year-over-year versus a 3.0% forecast, pushed back expectations for Federal Reserve interest rate cuts, with markets pricing a 96% chance of no March 18 cut. Broader risk-off sentiment hit equities, with Nasdaq down 0.8% and the S&P 500 down 0.6%, alongside widening credit spreads and steep declines in major private equity stocks. Crypto-related equities also fell, including MicroStrategy, Coinbase, and miners like IREN and Core Scientific, while stablecoin issuer Circle slid nearly 5%. Safe-haven assets rallied, with gold surpassing $5,230 per ounce, silver above $92, and crude oil over $67 a barrel.