Bitcoin price drops under $80K as PPI heats up Fed hike bets
Bitcoin price fell to around $79,700 after the U.S. April PPI jumped. Annual PPI rose to 6.0% (vs 4.9% forecast) and monthly PPI climbed 1.4% (vs 0.5%). Core PPI rose 1% month over month, the biggest increase since March 2022.
This reinforced the recent hot CPI reading (3.8%), pushing traders to cut 2026 rate-cut hopes and lift Fed rate-hike odds to above 30% for a move by December. Typically, higher rates reduce crypto appeal by improving yields on cash and government bonds.
The Bitcoin price move also triggered fast derivatives de-risking. CryptoQuant data showed Bitcoin open interest fell by about $1.25B across major exchanges (Binance, Gate.io, Bybit, OKX), with the biggest decline on Gate.io (~$578M). Crypto liquidations topped $63M within hours after the PPI release.
On the other hand, spot flows showed some support. Coinbase spot volume delta turned positive over the past two weeks, suggesting renewed buy-side activity near the low-$80K area, likely helped by improving ETF inflows. That said, crowded longs can increase short-term liquidation risk.
Traders are watching whether Bitcoin price can reclaim and hold the $80K level; a move back above $82K would be a clearer confidence signal.
Bearish
U.S. producer price inflation (PPI) came in hotter than expected, and the article explicitly shows the immediate transmission into risk pricing: Bitcoin price slipped under $80K, Fed rate-cut hopes were further trimmed, and rate-hike odds rose above 30%. This macro impulse typically acts as a headwind for crypto because higher expected policy rates tighten financial conditions.
The derivatives reaction strengthens the bearish read. Across major exchanges, Bitcoin open interest fell sharply (about $1.25B), and liquidations exceeded $63M within hours—signals that leverage was removed quickly rather than slowly. This pattern is consistent with past “hot inflation → liquidity tightening” episodes where BTC often sees a fast drawdown before any stabilization.
However, spot data is not purely negative. Coinbase spot volume delta turning positive and improving ETF inflows suggest some demand is absorbing selling near the low-$80K range. That can limit downside, but crowded long positioning (mentioned via rising net BTC bias on Hyperliquid) also increases the probability of liquidation-driven volatility.
Short term: bearish bias while Bitcoin price remains below $80K, with risk of further downside if macro volatility persists.
Long term: direction depends on whether subsequent inflation prints cool and allow the market to reprice the rate path. If yields and rate expectations stabilize, the current overshoot can transition into a consolidation rather than a sustained downtrend.