Bitcoin Falls Below $66,000 After Hot PPI Dampens Rate‑cut Hopes
Bitcoin dropped below $66,000 after U.S. producer price index (PPI) data came in hotter than expected, triggering a broad sell-off in technology stocks and reducing expectations for Federal Reserve rate cuts. The hotter PPI reading weakened hopes for near-term policy easing, lowering risk appetite across crypto markets and pushing the broader crypto market down roughly 3%. Analysts flagged key technical levels: a break under $65,500 could target $62,500–$63,000, while holding support may allow a rebound toward $68,500–$70,000. Factors that could stabilize or reverse the downturn include renewed institutional inflows into spot Bitcoin ETFs or easing macroeconomic concerns.
Bearish
Hotter-than-expected PPI reduces the likelihood of near-term Fed rate cuts, which increases real yields and typically weakens risk assets including Bitcoin. The immediate market reaction — a ~3% drop in crypto and losses in tech stocks — reflects reduced risk appetite. Technicals are vulnerable: a confirmed close below $65,500 would likely accelerate selling toward $62,500–$63,000 as stop-losses cascade and short-term momentum shifts negative. In the short term, traders should expect higher volatility and potential further downside until macro data show cooling inflation or until fresh institutional demand (e.g., spot BTC ETF inflows) reappears. Historically (e.g., past inflation surprises in 2022–2023), surprise upside inflation readings have triggered swift drawdowns in Bitcoin and correlated risk assets, with recovery contingent on policy pivot signals or renewed demand. Over the medium-to-long term, Bitcoin’s trajectory will still depend on macro policy direction, ETF adoption, and on-chain/flow fundamentals; a persistent higher-for-longer rate environment would be a headwind, while renewed easing or strong institutional flows would restore bullish momentum.