Four-Year Highs In US PPI Data Cost Bitcoin the $80,000 Mark

Bitcoin experienced a price drop below $80,000 on Wednesday, influenced by US inflation data showing the Producer Price Index (PPI) reaching its highest level since 2022. This unexpected surge in PPI, similar to the previous day's CPI report, has raised concerns about future financial tightening by the Federal Reserve, which is a headwind for cryptocurrencies and other risk assets. The US Bureau of Labor Statistics reported that the 12-month increase in the index for final demand was 6.0% as of April, the largest since December 2022. This inflation pressure, partly attributed to the impact of the US-Iran conflict on oil prices, has reduced the likelihood of the Fed cutting interest rates in June to just 1.4%. Analysts are watching for potential resistance at the CME futures gap around $84,000, with Bitcoin consolidating within this range until further clarity emerges regarding geopolitical events and economic conditions.

(Source：Cointelegraph)