Bitcoin slips below $72K as Fed holds rates and PPI jumps
US Fed held interest rates steady at 3.5%–3.75% as policymakers weighed Middle East-driven uncertainty. Fed Chair Jerome Powell flagged rising near-term inflation risks, citing higher oil prices. The committee maintained its outlook for one rate cut in 2026 and another in 2027, without signalling rate hikes this year.
US wholesale inflation added pressure. February PPI rose 0.7% month-on-month (vs 0.3% forecast) and 3.4% year-on-year, with core PPI also above expectations. Higher services costs were a key driver, including portfolio management and securities brokerage/investment advisory fees.
Policy backdrop: the Trump administration announced a 60-day waiver of the Jones Act, allowing foreign-flagged vessels to move fuel between US ports. The goal is to ease short-term fuel supply constraints and price pressures tied to shipping disruptions from the Iran conflict. Critics warned it could affect US maritime jobs, while analysts said fuel-price impact may be limited.
Bitcoin reacted to the macro volatility. Bitcoin fell 4.8% to around $71,070 after the inflation data and broader risk-off selling. Traders are watching support roughly between $70,250 and $71,275. On-chain signals showed profit-taking as 48,000 BTC moved to exchanges near the $75,000 area, while bid absorption on dips suggested demand may still stabilize price action. Overall, Bitcoin remains in a short-term uptrend but is vulnerable to continued macro-driven swings.
Bearish
Bearish mainly because the catalyst mix favors risk-off: the Fed stayed on hold while inflation pressures remain sticky (hot PPI, including core services). In prior cycles, when CPI/PPI surprises to the upside come alongside “higher-for-longer” messaging, BTC often sees short-term selloffs due to real-rate and liquidity expectations shifting.
For traders, the near-term setup is fragile. The article highlights profit-taking (BTC moving to exchanges near $75K) and a price reaction that breaks down toward key supports ($70.25K–$71.28K). Even if bid absorption suggests demand on dips, sustained volatility typically requires either cooler inflation prints or a clearer dovish turn from the Fed.
The Jones Act waiver is more of an energy logistics measure than a direct crypto driver, and analysts caution the fuel-price impact may be limited. That means it is unlikely to quickly reverse inflation sentiment.
Longer term, if inflation gradually normalizes and the Fed can deliver its stated path of cuts (2026/2027), BTC’s broader uptrend could reassert. In the short term, however, with macro-driven uncertainty and exchange inflows signaling distribution, the bias remains bearish.