Bitcoin pinned near critical support as hot PPI spike compounds rate hike fears: analysts
Bitcoin hovers near $80,000 support as a surge in producer prices intensifies fears of further interest rate hikes.Summary
Bitcoin is trading near a critical support level of $80,000 following a significant spike in April's Producer Price Index (PPI). The core PPI rose 1% month-over-month, exceeding forecasts and marking the steepest increase since March 2022. This data, coupled with recent CPI figures, has heightened concerns about the Federal Reserve potentially delaying or even reversing interest rate cuts, with CME FedWatch data now indicating a roughly 30% chance of a rate hike by year-end. Analysts are closely watching the $80,000 level, with a break below potentially leading to further declines towards $78,000 and $75,000. Negative ETF flows, particularly from Fidelity's FBTC, also contributed to market sentiment. While some analysts believe the CPI data's details might be less alarming than the headline suggests, the persistent rise in core services ex-housing remains a concern. Global factors like China's PPI turning positive also add complexity. Despite these macro headwinds, some see potential catalysts like the Clarity Act Senate markup and constructive outcomes from Trump's Beijing visit as factors that could support Bitcoin's price.
(Source：The Block)