Bitcoin dips below $80,000 as producer price inflation surges to 6%
Bitcoin slipped below $80,000 after US producer price inflation hit 6%, raising macro pressure and fueling bearish sentiment among crypto traders.
Bitcoin dipped below $80,000 on Wednesday after US producer price inflation surged to 6%, reinforcing macro headwinds for risk assets.
The US Producer Price Index rose 6% year-over-year, exceeding expectations and stoking fears that the Federal Reserve will maintain a hawkish stance. Bitcoin fell to around $79,500 before paring some losses, with traders closely watching the key psychological level. Matt Mena, senior crypto research strategist at 21Shares, said the data reflects mounting macro pressure partly tied to geopolitical tensions, but noted that bitcoin's ability to hold above $80,000 remains an important signal.
For cryptocurrency traders, the inflation print adds to a challenging environment where higher-for-longer interest rates reduce liquidity and risk appetite. Bitcoin's correlation with equities has re-emerged, making macro data a primary driver of short-term price action. Live crypto prices and charts on NowPrice show how the market is reacting in real time, with traders assessing whether the current sell-off is a temporary shakeout or the start of a deeper correction.
Mena warned that a sustained break below $80,000 could send bitcoin toward $78,000, with $75,000 becoming the next major support if selling intensifies. However, he argued the latest inflation shock may represent the 'final flush of weak hands' before several bullish catalysts return to focus. Improving macro conditions tied to President Donald Trump's upcoming China visit could help lift sentiment if tensions ease. Traders will also watch upcoming Fed commentary and the next Consumer Price Index release for further clues on the rate path.