After the U.S. May Producer Price Index (PPI) came in higher than market expectations, Bitcoin briefly declined. BTC initially rebounded to around $63,150 but then gave up those gains, returning to near $62,800. Market reactions indicate that inflation data continues to directly influence short-term trading sentiment toward crypto assets.
In May, the PPI rose to 6.5%.
In the U.S., the May PPI rose year-over-year to 6.5%, exceeding the market expectation of 6.4% and reaching the highest level since November 2022. The core PPI, excluding food and energy, was 4.9%, unchanged from the revised April figure.
Month-over-month, the PPI rose 1.1% in May, the same as the revised figure for April. Two consecutive months of increases have kept markets alert to potential future inflationary pressures.
Interest rate expectations are heating up again
PPI reflects changes in wholesale prices and is commonly viewed as a leading indicator of future consumer inflation. After the data came in higher than expected, traders reassessed the likelihood of the Fed maintaining high interest rates or further tightening policy.
The report noted that the probability of the Federal Reserve raising rates in 2026 on Polymarket once rose to nearly 51%, contrasting with earlier market expectations this year that favored rate cuts.
Compared to the sharp fluctuations seen after previous macro data releases, Bitcoin’s decline this time was relatively limited. After the data release, BTC briefly dropped by about 0.5% before stabilizing near $62,800, suggesting that some inflationary risks may have already been priced in by the market.
ETF funds continue to flow out
In addition to macroeconomic data, spot Bitcoin ETF fund flows also came under pressure. Data shows that spot Bitcoin ETFs recorded a combined net outflow of $214 million for the day.
Among these, the Grayscale Bitcoin Mini Trust ETF (BTC) recorded its largest single-day net inflow of approximately $17.5167 million, but it was insufficient to reverse the overall net outflow trend.
The market is currently watching whether BTC can hold the $62,000 level. If the price rebounds above $63,000, short-term sentiment may improve; if it continues to weaken, the support near $60,000 will once again come into focus.