Why is bitcoin down today: Hotter-than-expected inflation data knocks BTC below $80,000

U.S. producer prices for April significantly exceeded expectations, rising 1.4% month-over-month and accelerating annual inflation to 6%. Core PPI also climbed above forecasts. This hotter-than-expected inflation data, following a strong CPI report, has complicated the Federal Reserve's monetary policy outlook. In response, Bitcoin (BTC) dropped below the $80,000 mark shortly after the data release, though it later recovered slightly. The inflation surprise adds uncertainty for the Fed, especially with ongoing geopolitical concerns and potential supply disruptions impacting energy prices. The data might also reignite debates about further tightening versus rate cuts, particularly as a new Fed chair prepares to take leadership.

(Source：CoinDesk)