US PPI Gives Bitcoin Bulls a New Headache Into the Monthly Close

Bitcoin (BTC) experienced further downside pressure as the January Producer Price Index (PPI) data from the US Bureau of Labor Statistics significantly exceeded expectations, coming in at 0.5% month-over-month versus the anticipated 0.3%, with Core PPI rising even more sharply to 0.8%. This hotter-than-expected inflation reading increased pressure on risk assets like Bitcoin, while safe havens outperformed; gold surpassed $5,200 per ounce, and silver hit its highest levels since late January. Expectations for a March Federal Reserve interest rate cut also diminished. Analysts, like Michaël van de Poppe, noted the crucial nature of holding the $65,000 support level for Bitcoin, especially given the volatile monthly close, which could see a rerun of the massive market collapse seen in early February. At the time of writing, BTC was nearing a 17% loss for the month, potentially marking its fifth consecutive month of losses, a trend not seen since 2018.

(Source：Cointelegraph)